Ethics and altering the books (adapted from CMA exam). Alert, a closely held investment services group, has been successful for the past three years. Bonuses for top management have ranged from 50 percent to 100 percent of base salary. Top management, however, holds only 35 percent of the common stock, and recent industry news indicates that a major corporation may try to acquire Alert. Top management tears that they might lose their bonuses, not to mention then employment, if the takeover occurs. Management has told Roger Deeding, Alert's controller, to make a few changes to several accounting policies and practices, thus making Alert a much less attractive acquisition. Roger knows that these "changes" are not in accordance with generally accepted accounting principles. Roger has also been told not to mention these changes to anyone outside the top-management group.

a. What are Roger Deerling's responsibilities?

b. What steps should he take to resolve this problem?