In each of the following cases,

(a) identify the aspect of the accounting environment primarily responsible for the ethical pressure on the accountant as pressure to achieve a favorable outcome, to disclose confidential information, or to report good short-term results, and

(b) indicate the appropriate behavioral response for the accountant.

1. Jenny Jones, a tax accountant, is preparing an income tax return for a client. The client asks Jones to omit some income she received for consulting services because the amount was paid in cash. "I don't think the IRS will audit my return," declares the client. "And even if they do, what are the chances they would catch this?"

2. Fred French, an accountant for Top Electronics Company, has just finished estimating the cost for a new iPod device that the company plans to introduce. Cost estimates help the company to determine the price it can charge for new products. At a social gathering that evening, a friend casually asks Fred what Top's cost for the iPod device came out to be. Fred knows that the friend's brother works for a competitor of Top Electronics.

3. The manager of Jazz Department Store is ending his first year with the firm. December's business was slower than expected, and the firm's annual results are below Wall Street's expectations. The manager instructs Chris Green, store accountant, to record some of December's expenses in the following year. "This way, we'll meet Wall Street's expectations," declares the manager.