Lisa Deuel is a certified public accountant CPA and staff

Lisa Deuel is a certified public accountant (CPA) and staff accountant for Bratz and Bratz, a
local CPA firm. It had been the policy of the firm to provide a holiday bonus equal to two weeks’
salary to all employees. The firm’s new management team announced on November 15 that a
bonus equal to only one week’s salary would be made available to employees this year. Lisa
thought that this policy was unfair because she and her coworkers planned on the full two-week
bonus. The two-week bonus had been given for 10 straight years, so it seemed as though the
firm had breached an implied commitment. Thus, Lisa decided that she would make up the lost
bonus week by working an extra six hours of overtime per week over the next five weeks until
the end of the year. Bratz and Bratz’s policy is to pay overtime at 150% of straight time.Lisa’s
supervisor was surprised to see overtime being reported, since there is generally very little
additional or unusual client service demands at the end of the calendar year. However, the
overtime was not questioned, since firm employees are on the “honor system” in reporting their
overtime.Discuss whether the firm is acting in an ethical manner by changing the bonus. Is Lisa
behaving in an ethical manner?View Solution:
Lisa Deuel is a certified public accountant CPA and staff
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