Write a 750 word paper in APA format addressing the four Required questions in the assignment. Specifically indicated if Horizon Corporation CFO is being ethical or not. How would you react if you were Jim Fielding?

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Business

Angel Harrell

8 February, 12:39

Write a 750 word paper in APA format addressing the four Required questions in the assignment. Specifically indicated if Horizon Corporation CFO is being ethical or not. How would you react if you were Jim Fielding?

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Jamie Lutz · Answer 1

The ethical dilemma faced by Jim Fielding is his superior asking him to use incorrect means to report a profit. On one hand, the company will go into bankruptcy if profits are not reported for 2018, however, on the other hand windowdressing the financial statements is an offence.

The parties involved are Jim, the CFO and the users of the financial statements in general.

While making his decision, Jim should consider the following factors:

- He should consider the long term financial health of the company rather than short term non sustainable profit.

-He should tell the CFO about the consequences of inflating the profits of the company in a wrongful manner.

-He should also inform the CFO about the tax implications of reporting a profit when in reality a loss exists. Tax will have to be paid which will further deplete the company's resources.

-The auditor's might unearth this manipulation and this might lead to a loss of the company's reputation.

If the CFO still insists on sending the inventory to J. B. Sales, Jim should look for opportunities outside the organization as being a part of this financial fraud will jeopardize his career.

Explanation:

The ethical dilemma faced by Jim Fielding is his superior asking him to use incorrect means to report a profit. On one hand, the company will go into bankruptcy if profits are not reported for 2018, however, on the other hand windowdressing the financial statements is an offence.

The parties involved are Jim, the CFO and the users of the financial statements in general.

While making his decision, Jim should consider the following factors:

- He should consider the long term financial health of the company rather than short term non sustainable profit.

-He should tell the CFO about the consequences of inflating the profits of the company in a wrongful manner.

-He should also inform the CFO about the tax implications of reporting a profit when in reality a loss exists. Tax will have to be paid which will further deplete the company's resources.

-The auditor's might unearth this manipulation and this might lead to a loss of the company's reputation.

If the CFO still insists on sending the inventory to J. B. Sales, Jim should look for opportunities outside the organization as being a part of this financial fraud will jeopardize his career.