Samuel Sorrell works as a CPA for the accounting firm of Morris, Miller, and Kierns . He
Question:
Samuel Sorrell works as a CPA for the accounting firm of Morris, Miller, and Kierns . He has just completed an audit of the Randall-Cassidy Sports Wear Corporation. The audit revealed that Randall-Cassidy is in serious financial difficulty. Moreover, Sorrell feels o b ligated to issue an adverse opinion because Randall-Cassidy’s financial statements do not fairly reflect the financial status of the corporation, generally accepted accounting principles have not been followed properly, and major uncertainties about the sportswear market could cause a serious slump in corporate sales. Sorrell learns that Thomas Keifer , the CEO of Randall-Cassidy, plans to make a presentation to a group of potential investors. The presentation contains figures that are technically accurate but that will actually mi s lead the investors as to the true financial state of the corporation. Ethically, what should Sorrell do now? Would your answer change if one of the investors directly asked Sorrell about the company’s financial condition? Why or why not?
Step by Step Answer:
Business Law With UCC Applications
ISBN: 9780073524955
13th Edition
Authors: Gordon Brown, Paul Sukys