Acc 251 - Discussion of the Ethical Issues

To: Professor Dena Breece                                                        Methodist university

From: Yeison Reyes Santos

Date: September 28, 2016

Re: Ethical Issues

The case study heightens a discussion of the ethical issues. Vanessa Jones, IBT Company assistant chief accountant is late in the preparation of the quarter one trial balance which should be released to the management and regulatory agencies.  After discovering the trial balance credit balance exceeds the debit balance, she decides to force the debits and credits to balance off.

Shareholders of the company require that the corporation present the financial report that accurately reflects the position of the enterprise. The perspective will enable them to get fair returns from the company earnings. Also Potential investors need the financial reports to be accurate because the reports are used in making an informed decision on investing in the enterprise. Furthermore, the government requires the enterprise to present reports that are accurate and fair for purposes of taxation and compliance with the laws. In addition, the creditability of the business is at stake once it is discovered that the financials have been manipulated. The image of the company and employees may end up losing their jobs due to low business or closure.