Jennifer VanPelt is the assistant chief accountant at BIT

Company
Jennifer VanPelt is the assistant chief accountant at BIT 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 Jennifer 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, Jennifer 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. Jennifer 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(a) Who are the stakeholders in this situation?(b) What
ethical issues are involved?(c) What are Jennifer’s alternatives?View Solution:
Jennifer VanPelt is the assistant chief accountant at BIT Company
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