=+SA 10-1 Ethics and professional conduct in business The following is an excerpt from a conversation between two employees of Quantum Technologies, Pat Gapp and Faye Dalby. Pat is the accounts payable clerk, and Faye is the cashier.

Pat: Faye, could I get your opinion on something?

Faye: Sure, Pat.

Pat: Do you know Julie, the fixed assets clerk?

Faye: I know who she is, but I don’t know her real well. Why?

Pat: Well, I was talking to her at lunch last Monday about how she liked her job, etc. You know, the usual . . .

and she mentioned something about having to keep two sets of books . . . one for taxes and one for the financial statements. That can’t be good accounting, can it? What do you think?

Faye: Two sets of books? It doesn’t sound right.

Pat: It doesn’t seem right to me either. I was always taught that you had to use generally accepted accounting principles. How can there be two sets of books? What can be the difference between the two?