Linbarger Case Study

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1. What is the accounting problem that the Linbarger Company faces? In order to be able to know what problems a company is facing, look at the financial statements and how the balance sheet is looking like. Thereafter you can now state in particular the problems that the company could be facing. 2. Who will suffer negative effects if you do not comply with Lisa Infante instructions? Who will suffer if you do comply? You: the assistant controller may suffer the effect if you do not comply with the instructions. If you do not comply then the business will be forced to close down and all employees will be out of work. If you do comply and are caught, you could definitely be fired and possibly jailed for cooking the books. Maybe Lisa Infante will be fired as well …show more content…

An accountant frequently encounters ethical issues regardless of the industry and must remain continually vigilant to reduce the chances of outside forces manipulating financial records, which could lead to both ethical and criminal violations. Pressure from Management The burden for public companies to succeed at high levels may place undue stress and pressure on accountants creating balance sheets and financial statements. The ethical issue for these accountants becomes maintaining true reporting of company assets, liabilities and profits without giving in to the pressure placed on them by management or corporate officers. Unethical accountants could easily alter company financial records and maneuver numbers to paint false pictures of company successes. This may lead to short-term prosperity, but altered financial records will ultimately spell the downfall of companies when the Securities and Exchange Commission discovers the

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