1. What should an employee do when he or she discovers that there is an error in a projection? Why do you suggest that action? Would your answer change if the error was not likely to affect other aspects of the operation such as employment? Why or why not?
An employee should immediately report and error when it is discovered. All employees, especially employees who are burdened with the task of making projections which may impact the furute of the company must act with integrity. “According to Mintz, “Integrity is a fundamental trait of character that enables a CPA to withstand client and competitive pressures that might otherwise lead to the subordination of judgment.”3 A person of integrity will act out of moral principle and not expediency. That person will do what is right even if it means the loss of a job or client. In accounting, the public interest (i.e., investors and creditors) always must be placed ahead of the one's own self-interest or the interests of others, including a supervisor or client. (Steven M Mintz 2)”
The answer does not change whether it impacts other aspects of operations. Certainly, it is more important to report errors when those errors can impact the company. The integrity of the person making the projection affects the overall reputation and trustworthiness of the individual, the department and the firm as a whole. If the belief develops that a person is making poor projections or covering up errors, even small or non-consequential errors their future projections may be ignored or discounted due to this lack of integrity.
2. Identify the stakeholders potentially affected by what Daniels decides to do. How might each stakeholder be affected by Daniels's action and decision? Use ethical reasoning to support your answer.
Employees may be hired or laid off due to Daniels projections. In fact those people hired to meet the