Case Study: Financial Prompts (Case Study Sample)
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Harmony is entangled in an ethical dilemma between saving her subordinates' tenure and upholding the company's policy and values. She chose the former an action which reveals that she is kindhearted. According to her, it is the right thing to do by helping her juniors retain their jobs at the expense of window dressing financial statements. From where she stands, the result could justify the means if the means to arrive at a decision may be immoral (Tibor 2).
Harmony’s action can result in dire consequences both to him as an employee, shareholders, the company's prospect, and other stakeholders. First, overstating sales revenues could mean that the company must pay more corporate taxes to authorities, put more money into reserves, and declare more dividends to shareholders for equity invested (Akpanuko and Umoren, 5). Second, the company may also risk covering up expenses of branches that are currently making losses at the expense of the performing branches. Third, to make up for the unmet target of two branches, the company might be a force to seek quick debt, which is expensive in the long run. Additionally, declared dividends might not be paid promptly as promised, and shareholders may lose confidence in the management and consequently withdraw their equity holdings. Harmony, on the other hand, risks losing his job for violating company policy.
As a professional accountant, Harmony should understand that her actions dramatically impact the decision-making and future growth of the company. I would suggest that she upholds professional integrity, safeguards the company's values and policies, and be cautious when taking any action concerning the compan
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