Assume in the DigitPrint case that the venture capitalists do not provide additional financing to the company
Question:
Assume in the DigitPrint case that the venture capitalists do not provide additional financing to the company even though the adjustments have not been made. The company hires an audit firm to conduct an audit of its financial statements to take to a local bank for a loan. The auditors become aware of the unrecorded $1 million in accrued expenses. Liza Doolittle pressures them to delay recording the expenses until after the loan is secured. The auditors do not know whether Henry Higgins is aware of all the facts. Identify the stakeholders in this case. What alternatives are available to the auditors? Use the AICPA Code of Professional Conduct and Josephson’s Six Pillars of Character to evaluate the ethics of the alternative courses of action.
Step by Step Answer:
Ethical Obligations And Decision Making In Accounting Text And Cases
ISBN: 9780078025280
2nd Edition
Authors: Steven Mintz, Roselyn Morris