For the past five months, you have been working as a junior financial accountant for 'Babies are Us' Ltd. They are a highly regarded chain of department stores. Your supervisor is Sean Smith and is a member of a professional accounting body. You have been asked to inflate the revenue figures on the income statement, in order to make it look like the company made a higher profit than it actually did. Sean has asked you to record a credit sale that did not occur. He said that his annual bonus depends on this, and it would be ok as they would cancel the sale in the following financial year. You have your probationary meeting next month and worried you may lose your job if you say no.

Provide an answer by applying the steps of the Langenderfer and Rockness model to the  issue and recommend what course of action to take?

Answer rating: 100% (QA)

The Langenderfer and Rockness model provides a framework for ethical decisionmaking in accounting Lets apply the steps of the model to the situation described and recommend a course of action Step 1 I... View the full answer