ATC 9-5 - Alex Fish ATC 9-5 Determine the Facts: Sarah...

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Alex Fish ATC 9-5 Determine the Facts: Sarah Bartlett published an article in BusinessWeek, entitled “Who Can you Trust?’ she describes many accounting tricks, including the big bath, which is when a company makes asset write offs that drastically overstate expenses. This is allowed because the assets being written off are of questionable value. Outside auditors have no idea about the actual value of these assets, so they must take what management says as the value of the assets. Identify the Stakeholders: There are many stakeholders: upper management who gives the okay for the decision to engage in a big bath. The accountants that do the actual writing off are also a very important stakeholder. The stockholders and owners of the company are stakeholders because they could possible gain from this tactic. Outside auditors that are incapable of combating this possible unethical behavior . Identify the Ethical Issues: There are some obvious ethical issues in this problem. The idea of the
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This note was uploaded on 05/31/2010 for the course ACCT 1237 taught by Professor Hillman during the Spring '10 term at Drake University .

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ATC 9-5 - Alex Fish ATC 9-5 Determine the Facts: Sarah...

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