In each of the following cases,

(a) identify the aspect of the accounting environment primarily responsible for the ethical pressure on the accountant as pressure to achieve a favorable outcome, to disclose confidential information, or to report good short-term results, and

(b) indicate the appropriate behavioral response that the accountant should take:

1. Jim Miller, an accountant for the Geary Company, is reviewing costs charged to a big government contract to supply logistical support. The contract specifies that Geary is entitled to its cost plus 10 percent extra for profit. Jim notices that gardening services at the home of the company president, Stuart Geary, are included under miscellaneous expenses. The company's vice president, Slick Herve, tells you not to worry about this since the government expects a little bit of fancy accounting to be included in all of its contracts.

2. Juan Salles, an accountant for the law partnership Dewy and Suem, is working on the year-end financial statements. Currently the two partners, Dewy and Suem, each receive one-half of the firm's net income. Next year the allocation will change to a two-thirds, one-third split since Suem will be taking considerable time off to do pro bono work, something Dewy never does. Dewy suggested to Salles that he delay booking a large partial settlement the partnership received in December until January of next year when they will receive the final cash payment. Dewy commented that it would be "cleaner" to keep it all together.

3. Pete Jackson is the accountant for a large professional services firm. Part of his responsibility is to complete payroll tax reports based on the salaries paid to all the employees. Pete received a call from a friend at a search firm that specializes in personnel such as those employed at Pete's place of employment. Pete's friend casually asked how much certain employees were making, explaining he wanted to be able to calibrate market wages for work he was doing.