Question: Please help solve or correct Natalia Wallace is the new controller for Smart Software, Inc., which develops and sells education software. Shortly before the December

Please help solve or correct Natalia Wallace is the new controller forPlease help solve or correct

Natalia Wallace is the new controller for Smart Software, Inc., which develops and sells education software. Shortly before the December 31 fiscal year-end, James Cauvet, the company president, asks Wallace how things look for the year-end numbers. He is not happy to learn that earnings growth may be below 13% for the first time in the company's five-year history. Cauvet explains that financial analysts have again predicted a 13% earnings growth for the company and that he does not intend to disappoint them. He suggests that Wallace talk to the assistant controller, who can explain how the previous controller dealt with such situations. The assistant controller suggests the following strategies: (Click the icon to view the suggested strategies.) Read the requirements. is inconsistent with IMA standards Is not clear whether it would violate IMA standards Does not violate IMA standards Requirement 2. How might these inconsistencies affect the company's creditors and stockholders? The inconsistencies noted for Smart Software, Inc. particularly impact the financial statement information provided by financial accounting to external creditors and stakeholders. They will be led to believe the operating performance (profitability) of the company is better that it really is. This misrepresentation may result in the investors selling stock when they may have held it with the correct information. Similarly, creditors may grant credit to the company with the false income information when they may not grant credit with the correct income information. Requirement 3. What should Wallace do if Cauvet insists that she follow all of these suggestions? The controller should resist attempts to implement a, b and c and should gather more information about d. If the president ignores Wallace, then Wallace needs to consider if she wants to work for a company that engages in unethical behavior. Choose from any drop-down list and then continue to the next

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