Buddy Dupree Is The Accounting Manager For On Time Geeks

Buddy Dupree Is The Accounting Manager For On Time Geeks A Tech Suppo

Buddy Dupree is the accounting manager for On-Time Geeks, a tech support company for individuals and small businesses. As part of his job, Buddy is responsible for preparing the company’s trial balance. His supervisor placed a “hard deadline” of Friday at 5 pm for the completion of the trial balance. Unfortunately, Buddy was unable to get the trial balance to balance by the due date. The credit side of the trial balance exceeded the debit side by $3,000. To make the deadline, Buddy decided to add a $3,000 debit to the vehicles account balance. He selected the vehicles account because it will not be significantly affected by the additional $3,000. Is Buddy behaving ethically? Why? Who is affected by Buddy’s decision? How should Buddy have handled this situation? Write a paragraph (minimum of 100 words) for each of the three questions.

Paper For Above instruction

Analysis of Buddy Dupree's Ethical Behavior

Buddy Dupree's decision to add a $3,000 debit to the vehicles account to balance the trial balance is unethical. This act constitutes manipulating financial data, which violates fundamental accounting principles such as integrity, honesty, and transparency. Ethical behavior in accounting mandates accurate and truthful reporting of financial information, and altering accounts to meet deadlines compromises the integrity of the financial statements. Such actions can mislead stakeholders, including management, investors, creditors, and regulatory authorities, potentially causing them to make decisions based on false information. Although Buddy aimed to meet his deadline, his approach erodes trust and damages his credibility, which are critical elements of ethical conduct in the accounting profession.

Impacted Parties by Buddy’s Decision

Buddy's decision to artificially adjust the trial balance directly impacts several parties. First, the company's management relies on accurate financial reports to make strategic decisions; misrepresenting the financial position could lead to ill-informed choices. Second, investors and creditors who assess the company's viability may be misled, risking financial loss or misplaced confidence. Furthermore, regulatory agencies that enforce financial reporting standards depend on truthful disclosures; manipulating figures can result in legal penalties or sanctions for the company and individuals involved. Internally, Buddy's decision damages his professional reputation and can undermine team morale if such unethical behavior is uncovered. Overall, unethical adjustments harm both internal and external stakeholders, jeopardizing trust and legal compliance.

Alternative Approach for Buddy

In this situation, Buddy should have prioritized ethical and transparent financial reporting over meeting the deadline through dishonest means. He could have communicated openly with his supervisor about the difficulties in balancing the trial balance and requested an extension if necessary. Alternatively, Buddy could have reviewed the accounts meticulously to identify and correct errors or omissions contributing to the imbalance, rather than making unauthorized adjustments. If time constraints were unavoidable, he should have documented the discrepancy and informed management, emphasizing the importance of accuracy over punctuality. This approach maintains professional integrity, fosters trust within the organization, and adheres to ethical standards mandated by accounting principles. Ultimately, handling the situation with honesty aligns with best practices and safeguards the company's credibility.

References

American Institute of CPAs. (2020). Code of Professional Conduct. Retrieved from https://www.aicpa.org/research/standards/codeofconduct.html

Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2019). Financial Accounting: Tools for Business Decision Making (9th ed.). Wiley.

Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2020). Financial Accounting Theory and Analysis: Text and Cases. Wiley.

Healy, P. M., & Palepu, K. G. (2012). The Future of Financial Reporting: Challenges Ahead. Accounting Horizons, 26(2), 165-186.

CPA Ontario. (2018). Ethics and Professional Conduct. Retrieved from https://www.cpaontario.ca/

Pagano, C., & Rees, W. (2017). Ethical Dilemmas in Financial Reporting. Journal of Business Ethics, 142(1), 53-66.

U.S. Securities and Exchange Commission. (2021). Guidance on Financial Disclosure. Retrieved from https://www.sec.gov

Commission on Ethics of the American Accounting Association. (1993). Statement of Ethical Principles in Accounting.

Gaa, J. C., & Thibodeau, J. D. (2018). Ethical Behavior in Accounting: An Examination of the Moral Development of Students and Professionals. Advances in Accounting Education.

Carroll, A. B. (1999). Corporate Social Responsibility: Evolution of a Definitional Construct. Business & Society, 38(3), 268-295.