Yul is a CGA working as comptroller for Jones Manufacturing. He is concerned about the cash flow position of the company. There have been large orders, but Andrew (the CEO) has insisted on an aggressive pricing policy, and prices charged do not cover costs.
Yul approaches Andrew with his concerns, but Andrew will not listen. Andrew is a high-profile member of the local community; the success of the company means that it can hire a large number of people in this economically depressed area, and it is inconceivable to him that booming sales could translate into losses. Yul tries another approach. He explains that the auditors will be coming soon and, if he doesn’t expose the current position, they will uncover it anyway. Andrew tells him that he understands, but that he wants Yul to do whatever it takes to get through this audit. Afterward, prices can be raised, since by then the company will be in a strong position in the marketplace and this temporary hurdle will have been overcome.
Yul is trying to devise a strategy to reconcile his professional responsibilities and the survival of this company. It would be devastating to see the company close if he is unable to find a way of presenting the information to satisfy the auditors.
Discuss the pressures Yul faces. What should he do now?