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Unformatted text preview: company would be affected if for some reason the accounting was not done correctly and the company has to fork over a lot of past tax revenue to the government which means lower end of the year profits. Due to loss of profits, the company may decide to cut costs in house such as layoffs or reduce pay. Lower stock prices or ROE would affect investors. (d) Delaneys obligations are to report the companys income fairly by being objective. An account must avoid unethical practices and therefore should not involve themselves if they deem an act unethical. In such cases reporting to the CEO , Board of Directors, and even possibly becoming a whistle blower would have to happen in order for Delaney to maintain her integrity. However, in this case since it is considered tax planning and is not currently consider illegal or unethical by the government, she currently does not have an issue to report....
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This note was uploaded on 01/20/2012 for the course ACCOUNTING 101 taught by Professor Dubai during the Spring '11 term at Abu Dhabi University.
- Spring '11