Advanced Diploma of Accounting - Corporate Governance

Your client has earned more income than expected. On July 2nd the client pays for advertising and asks you to backdate the expense to the preceding

financial year. Backdating the deduction would lower the client's immediate tax payments. After all there is a difference of only 2 days, what should you do? Write a report to explain what control devices could prove that you have behaved unethically if you backdated the transaction in the accounting records? Could an ATO audit prove that the expense occurred in July rather than in June? Why is falsifying ATO documents both unethical and illegal.