Question: With respect to the Armadillo Foods case in this chapter
With respect to the Armadillo Foods case in this chapter, let’s assume that the controller is instructed by the CFO that to “make the numbers” the company must increase EPS by $.02 per share. This sounds innocent enough and it is only a five percent increase. Does the relative size of the increase make any difference in deciding whether to increase EPS by $.02? Would you go along with the demand of the CFO? What ethical issues should you consider in deciding on a course of action? Assume you discover that top management supports the CFO’s position because it would lead to bonuses for themselves. Under what circumstances might you consider blowing the whistle in this case?
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