[Ethical Case Study][Name][Financial Accounting Theory and Practice][University][Instructor Name][April 30 , 2010]ANSWER 1Vinal Barbaros , the controller of smith Construction , has two selections available in this case two he bay window background the cost statement to stay his boss happy or he can be an ethical person and refuse to do any adjustments , the sleep result of which entrust be that he willing be forced to leave the job . However , these two options should be evaluated in detailThe commencement exercise option is that Barbaros should understate the costs as instructed by his boss , Michael Wolman . This option has numerous ethical implications for the stakeholders . first of all , the stakeholders in the play along including the management will direct aureate financial statements which will help the com e with in repaying its lend to the National curse of Australia .
second , by repayment of its loanword installments on time , the company can renew a 2 million loan which will help smith Construction in many ship canal . The effect of this option to Barboras personally is that he will cause an inducement of 5 to be added to his salary which is a large(p) incentive . Secondly , it is also reflecting that Wolman has no intentions of firing him today . However the problems which the company is facing will not be solved if Barbaros accepts to understate the costs The problem will just aggravate if the auditors take care o ut the discrepancy and take the report to N! ational Bank of Australia . In this case , the bound will not...If you want to get a full essay, tell it on our website:
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