Please read CA18 - avoid unethical corporate behavior...

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Please read CA18-9 on page 986 and answer questions a-b by Wednesday Midnight. Post 2 substantive follow up replies to fellow classmates by Sunday Midnight. CA 18-9 (a) The ethical issue is in regard to reporting corporate profits. Nies’s is reporting based upon GAAP guidelines in order to report the financial statements fairly. However, Avery is suggesting that the company should change its reporting in order to look as though they earned a higher revenue. GAAP guidelines were created to help avoid unethical reporting so Nies’s financial statements would be the one that would need to be used in order to
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Unformatted text preview: avoid unethical corporate behavior because it would give a more realistic view of the companys financials. (b) Nies should insist that proper reporting is used and that any attempts to mislead investors should not be tolerated, furthermore if Avery fails to heed his advice I feel that he should look into alternative methods of making sure that the company follows proper protocol in regards to the financial statements to ensure that in the future, past digressions do not ultimately affect the company. This may mean that he will need to go over Averys head to the CEO and report her....
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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.

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