What are the ethical considerations that kravetz faces

Assignment Help Financial Accounting

Reference no: EM13168800

It is the end of an accounting year forJulietKravetz,controller of a medium sized, publicly held corporation specializing in toxic wastecleanup. within the corporation,only Kravetz and the president know that firm has been negotiating for several months to land a very large contract for wastecleanup in westerneurope.Thepresident has hired another firm change an hourly fee plus expenses, but has agreed not to submit a bill until the negotiations are in their final stage ( expected to occur in another three to four months) even if the contracts fallsthrought, the outside firm is entitled to received payment for its services. based upon her discussion with a member of the outside firm,Kravetzknowsthat its charge for services provided to date will be $150,000. this is material amount for the company.

Kravetz knows that the president wants the negotiations to remain as secret asposibble so that the competitors will not learn of the contract the company is pursuing ineurope. indeed, the president recently stated to her " this is not the time to reveal ouractionsin westerneurope to other staff members, our auditors, our readers of our financial statement: securing this contract is crucial to our future growth " no entry has been made in the accounting records for the cost of the contract negotiations.Kravetz now faces an uncomfortable situation. the company's outside auditors has just asked her if she knows of any year-end adjustment that have not yet been recorded.

Required :

What are the ethical considerations thatKravetz faces in answering the auditors question?Howshould she respond to the question.

Reference no: EM13168800

Questions Cloud

Draw the skeletal structure of the major organic product : Draw the skeletal structure of the major organic product in the following reaction (water is also a product).

How much heat energy was released : Suppose a snack bar is burned in a calorimeter and heats 2,000 g water by 20 °C. How much heat energy was released? (Hint: Use the specific heat equation.) Give your answer in both joules and calories.

State the initial ph when no koh has been added. : The pH after adding 5.0mL, 10.0mL, 15.0mL, 20.0mL (keeps increasing by 5)... 50mL of KOH aqueous solution to the 50.0 mL sample of the HF solution.

How many carbon dioxide molecules are generated : How many carbon dioxide molecules are generated by the combustion of one molecule of hexane (C7H14) in ample oxygen?

What are the ethical considerations that kravetz faces : What are the ethical considerations that Kravetz faces in answering the auditors question? How should she respond to the question.

Combine the two equations for the formation of liquid water : Combine the above two equations with that for the formation of liquid water and use addition and/or subtraction(i.e. Hess's Law) to arrive at the equation for the formation of magnesium oxide.

State what is the molecular formula of the compound : sample of gas occupies 10.0-mL at 294.5 K and 1.10 atm. Upon further analysis, the compound is found to be 13.068% C and 86.932% Br. What is the molecular formula of the compound?

Explain a compound contains only carbon : A compound contains only carbon, hydrogen, nitrogen and oxygen. Combustion of 0.314 g of the compound produced 0.426 g CO2, and 0.0620 g H2O. In another experiment it is found that 0.103 g of the compound produces 0.0460 g of NH3

Using the coefficients demonstrate that is normalized : Write as a superposition of 3 eigenstates, indicating the numerical value of each coefficient. Using the coefficients, demonstrate that is normalized.

User Account

All Pages