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Accounting ethics

Name

Institutional Affiliation (s)

Instructor’s Name

Date
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Accounting ethics

Consider what you have learned relative to ethics and financial reporting. What is the

rationale for the calculations/process used to estimate the $180,000 uncollectible allowance?

The lesson learned in ethics, and financial statements are two things, the revenue and

balance sheet. In terms of ethics and financial reporting, accountants prefer to use two methods

to calculate for onetime non-recoverable accounts. The primary approach focuses on the revenue

statement and the economic relationship between non-collectable incentives, known as the sales

method percentage. The method is also used to measure overall revenue finances. However, it

primarily manages the financial statements at the stage of the receivable methodology with the

balance sheet. The subject of financial statements, in this case, is the account receivable. The

process of obtaining the loose debt amount that an organization aims to achieve is useable for the

amount of the receivables.

The reasons for the method of calculating an uncollectible allowance of 180,000 dollars

is, therefore, explainable. For example, for each receivable and general scale, the XYZ industries

may use an alternative rate (Kwon & Lee, 1). The $180,000 per claim approach applies to this

scenario to assess the desired allowance.

How do you think the misstatement of funds will impact the income statement and balance

sheet?

The error of any company appears to affect the declaration of sales and the balance sheet

adversely. For example, the primary purpose of financial statements preparation is to classify the

transaction of the company within a fiscal year (1). But if the organization's financial year varies

in length. The financial statement and the balance sheet represent examples of financial
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information in this situation. By analyzing the component of assets and liabilities, the balance

sheet shows the financial condition.

In comparison, the profit and loss account -is reflected in the income statement, and the

financial results of the company are defined. Therefore, the inability to calculate funds does not

balance the balance sheet, which means that all assets and liabilities are not equal (1). On the

other hand, the income statement has a negative effect since the earnings are more significant

than the real one.

What is the ethical dilemma you face? What are the ethical considerations? Consider your

options and responsibilities as an assistant controller.

The ethical dilemma here, as an assistant controller- is truthfulness. Integrity is one of the

social workers' fundamental principles under the codes of ethics of the National Social Workers

Association in accounting. The request from the controller is immoral and inappropriate activity.

Growing sales aim to pursue better outside lenders and consumers. The approach is not

acceptable under ethics (Alleyne, Haniffa, & Hudaib, 2). In this case, the ethical concern is that a

person should prevent deceitful actions as a social worker in the accounting field.

Also, an accounting social worker has to be ethical when displaying obligations. One

should protect the prestige, utility and credibility of the accounting profession, as an assistant

control officer (2). There is a limitation of opportunities and duties as an assistant manager. The

current dilemma is approachable by two means. First of all, the controller must consent and then

face the repercussions when an auditor finds the violation. Secondly, dignity and fairness should

be maintained, and the management should report the matter. But if the administration is still
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thinking of rectifying uncollectible accounts, the latter solution would be to quit and not breach

the company.

Identify the key internal and external stakeholders. What are the negative impacts that can

happen if you do not follow the instructions of your supervisor?

Internal and external stakeholders have a significant impact on the enterprise in-company

organization. Examples of internal stakeholders are; the company's executives, employees,

managers and the management board. The domestic market practices are likely to be affected by

internal stakeholders. On the other hand, external players primarily influence the external

operations of any company. The government, the local community and society, consumers,

suppliers and creditors are examples of external actors. There is usually a negative effect if one

does not follow his supervisor's orders (2). In this scenario, the adverse effects may arise as an

assistant controller;

i. The costs of infringement- are also paid. In most situations, conformity risks also arise

before the transition happens. Usually, the company does not change or adapt to the

problem and thus, losses.

ii. The danger that the company loses its customers. If clients know that the company is out

of date with its financial activities, losing clients may be detrimental to the organization.

iii. The organization’s future losses. The occurrence also takes place in the actions of the

company to attempt to adapt the existing method to the advantages of its accounting

practices, which may lead to future losses for the company.

What are the potential consequences if you do comply with your supervisor’s instructions?

Who will be negatively impacted?

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In most situations, persons who disobey their instruction face possible repercussions.

Such as losing their legitimate accounting qualifications. Similarly, there are other repercussions

if the interventions lead to substantial damages for the organization, including exceptionally high

fines and even prison sentences. For XYZ sectors, the adjutant controller and not the boss who is

the controller is adversely affected. In the job description of the assistant manager- it needs to be

appropriately documented. If the assistant controller fails to file correctly, the company may be

at risk of closure.
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References

Alleyne, P., Haniffa, R., & Hudaib, M. (2019). Journal of International Accounting, Auditing

and Taxation. Journal of International Accounting, Auditing and Taxation, 34, 69-90.

https://www.researchgate.net/profile/Philmore_Alleyne/publication/331302325_Does_gr

oup_cohesion_moderate_auditors'_whistleblowing_intentions/links/5c94d31d92851cf0ae

8fa276/Does-group-cohesion-moderate-auditors-whistleblowing-intentions.pdf

Kwon, K. H., & Lee, N. (2019). Unbilled Receivables, Loss Allowances and Earnings

Management. Academy of Accounting and Financial Studies Journal.

https://www.abacademies.org/articles/unbilled-receivables-loss-allowances-and-earnings-

management-8013.html