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What unethical act has joan committed

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Reference no: EM132381989

Question

Joan is a senior accountant who recently agreed to give a professional review of the financial statements of Baker Consulting Inc. Joan is a personal friend of the president of this company and has an outstanding loan to the company.

Baker Consulting Inc. is having cash flow issues that may force it to lay off some employees, but the owner has assured Joan that everything is under control and that the company is about to land several large sales contracts.

He also explained that if the financial statements revealed any issues, the company would lose potential customers and suppliers. After some discussion, Joan decided to issue a positive opinion of the financial statements and not disclose any issues.

What unethical act has Joan committed?

Reference no: EM132381989

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