Please use the following 4-step approach when analyzing ethical issues and case studies.

1. Identify the ethical issue(s) . Isolate the true issue or issues. 2. Identify the stakeholders who are the individuals impacted by the issue? 3. List at least three possible courses of action and describe how each will affect the stakeholders identified in step 2 above. 4. Determine which course of action you would choose and why. Which stakeholders are served?

Ethical Issue:

At year-end, the president instructs you, the controller, not to record any accrued expenses until next year because they will not be paid until then and he would like to ensure that the company hits their profit targets. He is scheduled to sell some of his company stock in the first quarter and he does not want prices to fall. If you listen to the president, the company will show a profit as opposed to a small loss. What do you do?