23 May WHAT IMPROPER ACTIVITY DID THE EMPLOYEES AT GE ENGAGE IN?
Using the guidance discussed in class as well as materials within the textbook, consider the following 2 scenarios and respond to the questions noted (total of 7 questions).
Scenario 1: Trial Balance
Vanessa Jones is the assistant chief accountant at IBT Company, a manufacturer of computer chips and cellular phones. The company presently has total sales of $20 million. It is the end of the first quarter and Vanessa is hurriedly trying to prepare a trial balance so that quarterly financial statements can be prepared and released to management and the regulatory agencies. The total credits on the trial balance exceed the debits by $1,000.
In order to meet the 4 p.m. deadline, Vanessa decides to force the debits and credits into balance by adding the amount of the difference to the Equipment account. She chose Equipment because it is one of the larger account balances; percentage-wise, it will be the least misstated. Vanessa plugs the difference! She believes that the difference is quite small and will not affect anyone’s decisions. She wishes that she had another few days to find the error but realizes that the financial statements are already late.
Instructions
1. List three stakeholders (companies or people harmed or benefited) in this situation.
2. What ethical issues are involved (what is the dilemma)?
3. What are Vanessa’s alternatives?List at least three alternatives that she has.What are the benefits and weaknesses of each alternative, including ethical traps, if any, that might be relevant to each alternative?
Scenario 2: GE’s Accounting
The July 28, 2007, issue of the Wall Street Journal includes an article by Kathryn Kranhold entitled “GE’s Accounting Draws Fresh Focus on News of Improper Sales Bookings.” The article is attached to this Assignment in Isidore.
Instructions
Read the article and answer the following questions.
4. What improper activity did the employees at GE engage in?
5. Why might the employees have engaged in this activity? What ethical traps may they have fallen into?
6. What were the implications for the employees who engaged in this activity?
7. What does it mean to “restate” financial results? Why didn’t GE restate its results to correct for the improperly reported locomotive sales?
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.