Case Study: Ethical Dilemma at Orion Tech Solutions

Orion Tech Solutions is a rapidly growing software company that specializes in AI$-$driven business solutions. Over the past year, the company has faced increasing pressure from investors to show strong financial growth. As the fiscal year comes to a close, the CFO, Mark Reynolds, notices that the company is slightly below its earnings target.

During a board meeting, CEO Samantha Collins expresses concerns about missing financial projections, stating that failing to meet earnings expectations could negatively impact stock prices and investor confidence. She privately pulls Mark aside and suggests some "adjustments" to improve financial results, including:

Extending the useful life of assets $($such as computer servers and office equipment$)$ to reduce annual depreciation expense.

Deferring certain operating expenses until the next fiscal year to reduce costs on the income statement.

Recognizing revenue early for contracts that have been signed but where services have not yet been provided.

Mark knows that while these adjustments could be made within the flexibility of accounting rules, they would misrepresent the company's financial position. However, Samantha strongly implies that his future at the company$$including bonuses and promotions$$depends on his cooperation.

Additionally, the external auditors will be reviewing the company$$s financial statements soon. Mark wonders if they will notice the adjustments, and whether he will be held responsible if any issues arise.