Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ethics Case After only six weeks on the job, Maraya Keynes, 29, was already beginning to wonder whether taking the Assistant Controller job at Edgars

image text in transcribedimage text in transcribed

Ethics Case After only six weeks on the job, Maraya Keynes, 29, was already beginning to wonder whether taking the Assistant Controller job at Edgars Corporation was a mistake. Little things that her new boss, George Lozinsky, the Corporate Controller and Chief Financial Officer had told her about her working environment had turned out to be exaggerated. For example, he had told her that she would be a key part of the management team, but she was never asked to attend meetings that included non-financial managers who were at her level. Lozinsky had shown her audited financial statements for the previous two years, but as she got into the financial statements for the year that they were now trying to close, she saw that there had been a significant reversal in the company's prospects during the year that had not been revealed to her before she took the job. Because the accounting department had been very short-handed until Maraya and several new clerks were hired, financial statement preparation was very behind schedule. Maraya knew based on her examinations of several major balance sheet accounts that there would be significant unfavorable year-end adjustments that would be made to the preliminary financial statements that Lozinsky would show to the bank. Lozinsky and Mr. Edgars (owner) had a v days where they would present more recent financial statements that would be the basis for the renewal of the company's bank financing that would expire in one month. Maraya had kept Lozinsky informed about all of the adjustments that she was finding, but he brushed her off lightly as if he wasn't concerned. The day before the bank meeting, she presented him with packets for the bank meeting that included, among other things, an analysis that the company routinely gave to the bank which showed that the company was in violation of two of its three major bank loan covenants?. She pointed this out to him and he studied the sheet carefully for several minutes, then said to her, Don't worry, I'll take care of it. Ethics Case After only six weeks on the job, Maraya Keynes, 29, was already beginning to wonder whether taking the Assistant Controller job at Edgars Corporation was a mistake. Little things that her new boss, George Lozinsky, the Corporate Controller and Chief Financial Officer had told her about her working environment had turned out to be exaggerated. For example, he had told her that she would be a key part of the management team, but she was never asked to attend meetings that included non-financial managers who were at her level. Lozinsky had shown her audited financial statements for the previous two years, but as she got into the financial statements for the year that they were now trying to close, she saw that there had been a significant reversal in the company's prospects during the year that had not been revealed to her before she took the job. Because the accounting department had been very short-handed until Maraya and several new clerks were hired, financial statement preparation was very behind schedule. Maraya knew based on her examinations of several major balance sheet accounts that there would be significant unfavorable year-end adjustments that would be made to the preliminary financial statements that Lozinsky would show to the bank. Lozinsky and Mr. Edgars (owner) had a v days where they would present more recent financial statements that would be the basis for the renewal of the company's bank financing that would expire in one month. Maraya had kept Lozinsky informed about all of the adjustments that she was finding, but he brushed her off lightly as if he wasn't concerned. The day before the bank meeting, she presented him with packets for the bank meeting that included, among other things, an analysis that the company routinely gave to the bank which showed that the company was in violation of two of its three major bank loan covenants?. She pointed this out to him and he studied the sheet carefully for several minutes, then said to her, Don't worry, I'll take care of it

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CISA Certified Information Systems Auditor Practice Exams

Authors: Peter H. Gregory

1st Edition

1260459845, 978-1260459845

More Books

Students also viewed these Accounting questions