9/14/07 Revenue Recognition Scott Wetzel Ethical Issues First and foremost it is problematic that Mike would approach the company’s accountant with such a request, especially at such short notice. It is not only a legal transgression but it puts you in a tough position, torn between wanting to help him while at the same time wanting to avoid breaking the law by counting for revenue that hasn’t actually been earned yet. And it’s also very unprofessional of Mike to call on old, petty favors in exchange for a small act of white-collar crime. There’s also no way of telling if you will be asked to carry out similar tasks in the future if you agree to this one. Affected Parties The accountant is probably affected most directly since he is the one being pressured into making a tough ethical decision and his actions will carry the most weight. Mike Lynch is also considerably affected since the financial statement will determine whether or not he receives his much-needed bonus and can continue to contribute to the recovery of his sick
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This note was uploaded on 04/08/2008 for the course ACCT 201 taught by Professor Shleifer during the Spring '08 term at Clemson.