Ethics in Accounting As the top accountant at Blaire's Costume Jewelry Company, you discover that net income in each of the previous five years has been overstated due to an error in accounting. After much thought, you decide to approach the company president. His response is, "What the public doesn't know won't hurt them. We'll just adjust this year's income to make up for the mistakes. We had a pretty good year, and I think our income for this year can absorb the errors."
Identify the ethical dilemma of this situation, identify the ways that you could respond, and explain the possible consequences of your responses.