a) According to Businessdictionary.com, stakeholders are persons, groups, or organizations that can affect and be affected by an organization’s actions, objectives, or policies. AggiePride Nationewide is a stakeholder in this case because her unethical actions of forcefully adjusting the trial balance negatively impacted the financial statements for Martin Company. Martin Company is a stakeholder because its financials could be under- or overstated due to Agg-ie’s poor preparation of the trial balance. If the financial statements are not properly prepared, then the stakeholders who are negatively affected without knowledge are Martin Company’s stockholders. Stockholders use a company’s financials to determine how they want to use their stock, whether they want to sell it, keep it, or buy more of it. Due to the …show more content…
Agg-ie forcefully adjusted the trial balance in order to meet the deadline. She realized that the financial statements were already late and now she is trying to meet the 4 p.m. deadline. ii. She plugs the $1,000 difference in the Equipment account. This action can cause the financials to be thrown off because she assumed that the equipment account would not be misstated. This assumption is unethical because someone in management could possibly detect the error that she made in the trial balance by observing the financial statements of the current year and prior years. iii. She assumed the difference wouldn’t affect anyone’s decision, but she doesn’t know if that is true. Management’s and the regulatory agencies’ decisions might be misconstrued due to her error, although they did not see her prepare the trial balance. iv. She could be presumed as untrustworthy if the error is discovered, and she could lose her job. Management might not be able to believe that she hasn’t made this mistake before. Her dishonesty and failure to comply with GAAP procedures will cause her reputation to