As Coruscant Industries' controller, you've just finished an exhausting year and finally issued Coruscant's annual report. After being surprised by the disappointing net income a year earlier, the board of directors charged you with improving the company's fortunes. Reviewing the previous year's financial results, you determined that the primary reason for Coruscant's disappointing results was higher than the expected cost of goods sold. Seeking to improve the efficiency of operations and lower cost of goods sold, you aggressively implemented several cost-containment measures to address this problem, which resulted in numerous complaints from the manufacturing supervisors. Despite these criticisms, the current annual report, which just met the analysts' projections of net income, should serve as validation that you successfully responded to the board of directors' challenges. As a reward for your efforts, you've decided to take a few days off to work on your golf game.

As you are preparing to leave the office, you receive an email from Yvette, a first-year staff accountant whom you had asked to double-check the accuracy of the current year inventory count. Yvette informs you that, while the current year inventory records appear in order, she discovered an error in the beginning inventory records. It appears that you inadvertently transposed two numbers in the previous year's inventory balance, resulting in a material understatement of the previous year's ending inventory. She says that, since the current year inventory records are accurate, the error "self-corrected" and there is no need to adjust the current year's financial statements. Do you agree with Yvette's assessment? What ethical considerations does this situation present?