Explain the ethical issue in the assigned scenario.

Explain who the stakeholders are and the possible consequences to each stakeholder.

Analyze the alternatives from the following standpoints: $($a$)$ economic, $($b$)$ legal, and $($c$)$ ethical.

Hypothesize at least two reasons why someone might take unethical actions.

Construct one question related to the Decision Framework for Making Ethical Judgements or business ethics in general. Ethics in Accounting $-$ Scenario

You are the controller at a small paper company. It is Friday, September $30,$ and you are closing the books for the month. You

sent an email yesterday asking all the salespeople to submit any final invoices for paper and related services sold this month.

The sales staff each get paid commission based on monthly and quarterly sales, so it is important to accurately record the

sales in the correct month and quarter.

Brad, a salesman, stops by your office to give you an invoice from his best customer. As you start to record it$,$ you realize the

customer has not signed off on it$.$ Brad explains that he spoke to the general manager at the client yesterday, who assured

him the order was final. However, Brad did not realize the general manager would be out of the office today. Brad says to you,

$“$You can still record it as sales this month. I$’$m sure they are good for this order; they are my best customer! And, with this last

sale, I hit my sales goal for the month and the quarter!$”$

Typically, you require signed invoices from the sales staff to record them as sales. However, Brad is an excellent salesman and

a long$-$term employee of the company. In this case, you are considering recording the sale today, so it shows on the books in

September.

Answer rating: 100% (QA)

Ethical Issue The ethical issue in this scenario revolves around the decision of whether to record the sale without the required signed invoice This action would involve compromising the companys stan... View the full answer