The multifaceted accounting design that the Linbarger Company faces is that it can’t have the capacity to comply with the guarantees they made to the insurance agency. Because it associated with management of cash, the cash flow and the planning and management of the money. The Linbearger Company is unable to comply with the loan agreement made with the insurance company because their cash account balance is below the agreed amount (Cernu?ca ; Gomoi, 2015). The company should have considered an alternative, for example, short-term cash funding so that they could be all set on time. The company cannot raise the minimum amount they had agreed with the insurance company, breaching one of the principles of insurance-utmost good faith. This has forced it to opt for a wrong decision of keeping the cash receipt book open for an extra day to cater for the report to be submitted on June 30, when a summary of the accounts ought to be made.
According to the scenario, there are some of the ethical issues that need to be tackled. First, by agreeing to the vice president’s decision is contrary to my integrity (Sharpe, 2016). When applying for the job, I promised to give my best with the most integrity. This means that I should not condone any such behavior of dishonesty and corruption. By agreeing to such command, it means I have breached the contract it might as well cost me my job. The vice president’s decision was incorrect thus agreeing with her meant violating some major ethical principles of accounting.
Furthermore, it isn’t right to keep the money receipt book open, when the month is finished, notwithstanding when it implies an extra one day. As the credit was being conceded to the organization, there were contracts marked, and trustworthiness was a vital issue. The organization consented to cite the base of $200,000. On the off chance that there isn’t sufficient money to report, it doesn’t intend to begin concocting figures or broadening dates. This is losing respectability to the organization, all the more so when the insurance agency understands this. Trustworthiness ought to be kept up in each business exchange at all cost, independent of the circumstance.
I ought to submit to the applicable laws to keep any activity that can risk my calling because of the additional infringement grants adversely on my expert conduct. It is exceptionally basic for an expert bookkeeper to consider both subjective and quantitative perspectives while examining the significance of a danger. On the off chance that the circumstance is endangered, at that point it is smarter to stop the administration included.
On the off chance that I don’t agree with my budgetary VP, Lisa Infante’s choice, I am in danger of losing my activity. This is an immediate request from my administrator. This implies I will ignore her; she can be embarrassed to flame me. Be that as it may, this isn’t the correct advance to take. I should be arraigned in court for doing such deceitful activity.
When I agree with the VP’s choice to keep the receipt books open, it naturally will accompany some perilous impacts. To start with, I will rupture my trustworthiness. I will never again be trusted at whatever point genuinely will be required since I have a record of the exploitative business exchange. All the more thus, the organization is put at the most noteworthy hazard. Whichever the condition, the insurance agency will at present understand that this month, the organization had neglected to raise the sum expected of them, since they too do their reviewing. By defaulting on the credit, will implies the organization can be shut as expressed by the budgetary VP. Conclusion of the organization will state the representatives will lose their employment.
Then again, on the off chance that I give in, at that point I would be at a misfortune due to having traded off my respectability. Since I am the person who started it, if by misfortune I get captured, I may wind up in prison and lose my activity for changing the books. The insurance company stakeholders would get caught up in unethical practice mix. The company is even at a higher risk because the insurance company would realize that the company did not manage to attain a particular balance on the cash account this month. A company can save itself from the risk of being fined because of unethical behavior by setting its operational ethical guidelines (Trevino & Brown, 2004).
A company’s reputation is an essential asset, and it is a challenge to bring it back once lost. Abiding by the promises, the status is upheld. I would prefer more harmless ways that could keep my integrity clean and at the same time safeguard the company from imminent risks. The act of being confident and honest is paramount in businesses of all kinds. Because of those reasons, I would advise the vice president to confront the insurance company about the inconvenience and discuss it.
In every business transaction, honesty is always the top priority (Bampton ; Cowton, 2013). As an employee who knows that keeping the cash receipt book open when the month has ended already, is wrong, I would opt for another way that could cause less harm, up-keeping my integrity and keeping the company out of risks. I would advise my financial vice president that this is a wrong act and that we should keep the book records just as ought to be done. I would then encourage her to talk this matter with the insurance company and explain that it was only some inconvenience and this would be the first and last. Am sure they will understand since this is not the first case they are handling issues like this. By doing so, they will gain trust in us, for being honest.
Accounting wrong decision of keeping the cash