Accounting Ethics Case

EYK5-7. Accounting Ethics Case During the last week of 2014, George Connors, controller of u Appliances, received a memorandum from the firm's president, Jane Anderson. The m stated that Anderson had negotiated a very large sale with a new customer and directed see that the order was processed and the goods shipped before the end of the year. r that she had to depart from the usual credit terms of n/30 and allow terms of n/60 to Although the credit terms were unusual for the company, Connors was particularly nle the news because business had been somewhat slow. The goods were shipped on D the sale was incorporated into the 2014 financial data. pleased with December 29 and It is now mid-February 2015, and two events have occurred recently that, together, c cern for Connors. First, he was inadvertently copied on a letter from the firm's bank t The letter stated that the bank had reconsidered its decision to deny a loan to the co now granting the loan based on the new, and favorable, sales data supplied by the to Anderson. and is ent. The mpany presid icularly impressed with the sales improvement shown in December." Although s had been involved in the initial loan application that was denied, he had been unaware that the president had reapplied for the loan. The second event was that all of the goods shipped on December 29, 2014, to the new customer had just been returned. Required What are the ethical considerations George Connors faces as a result of the recent events