Acc260 Solving Ethical Dilemmas in the Accounting Profession
July 25, 2010
Solving Ethical Dilemmas in the Accounting Profession
This dilemma in this ethical case is whether or not Daniel Potter (Dan), staff accountant for Baker Greenleaf accounting firm, should report unethical changes his immediate supervisor, Oliver Freeman, made to an audit report. The problem is that a large piece of real estate was valued on the balance sheet at $2 million. Dan had estimated the property at $100,000. Dan based his value estimate on the condition, location, and how long the property had been vacant. He approached the managers of the subsidiary with a proposal to write down the value of the property by …show more content…
Dan could easily let the matter go and work on rebuilding his reputation with the company after the negative review from Oliver and the matter would be over. What if someone were to buy that piece of property and discover it was only worth $100,000 when the audit report clearly states that the property was worth $2 million? Dan could be blamed for the misstatement and could be held liable by the buyer and the professional communities to which he belongs. If he does say something about the conduct of Oliver he could lose his job as well as his reputation in his professional career.
The impact of his decision