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BYP8-6 – Ethics Case
(a) Who will suffer negative effects if you do not comply with Gena Schmitt’s instructions? Who will suffer if you do comply?
(b) What are the ethical considerations in this case?
(c) What alternatives do you have?

(a) Who will suffer negative effects if you do not comply with Gena Schmitt’s instructions? The company in whole will suffer and may be closed because of that report. Who will suffer if you do comply? Nobody, will suffer if the company comply.

b) What are the ethical considerations in this case? Ethically, the responsibility of ethics in accounting is a rule for the accountants to ensue particular rules for carry out the job of accounting in a rational way. By following guidelines created for accounting through the ethics broad made for accountants, the company will suffer. They must consider the professional needs while making this judgment and consider moral values. The assistant controller need to look at the overall situation and see if the total truth should be told or give a report on the information that is given that the money will be available the next day.

(c) What alternatives do you have? By defaulting on the loan agreement the company will suffer so the only alternative would be to inform the insurance company that $230,000 is available when the check become available it will cover this amount. If the check does not show count all cash, inventory and notes receivable into the account and hope for the best.

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