Chapter 3, Problem 3.8BYP

(1)

To determine

Ethical Case Study

J is the assistant chief accountant of Company B and is busy in preparing the trial balance at the end of the first quarter, as on the basis of that financial statements can be prepared and presented to the management and the regulatory authorities. But she was struck with the non-agreement of both the column of the trial balance as the credit total is $1,000 more than the debit total. As the deadline draws nearer, J decided to forcefully make both columns agree by adding $1,000 to the Equipment balance. She thought that the Equipment is a huge balance and nobody could find out the difference and in the mean time she could detect the differential amount.

To Identify: The stakeholders in this situation.

2.

To determine

To Identify: The ethical issues involved.

3.

To determine

To Identify: The alternatives available to J.