Question: Case 2 ( Chapter 3 ) Student Handout The Accounting Information SystemRon Hollister is a member of a group of students who have been given
Case Chapter Student Handout The Accounting Information SystemRon Hollister is a member of a group of students who have been given an accounting assignment by their professor. Ron is responsible for the portion of the assignment that requires the preparation of the trial balance and the financial statements. The assignment is due within an hour and Ron is working alone. All he has to do is complete his part of the assignment and hand the entire document in for grading. He has just prepared the trial balance and found out that it does not balance. The total credits are greater than the total debits by $ Without telling the other members of the group, Ron forces the trial balance to balance by adding $ to the Salaries Expense because it was the largest expense and he hoped no one would notice the difference. He wished that he had a few more hours to find out why the trial balance did not balance, but he knows he cant miss the deadline for handing in the assignment.a Who are the stakeholders in this situation?b What are the ethical issues involved?c What are Rons alternatives?d How would your answer change if Ron was a professional accountant and was preparing financial statements for a public company?Challenge Yourself:e What advice would you give to Ron to help him find the error in the trial balance as quickly as possible?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
