In this Topic, you learned about ethics in accounting. In the Learning Activity Ethical Issues Facing the Accounting Industry, you are given a scenario as an Accountant at Drive Write in which you are presented with an ethical dilemma. Based on the IMA Statement of Ethical Professional Practice listed in the text, what would you propose to do in response to this scenario and are your proposed actions supported by the statement of ethics? Do you think that your proposed actions could result in the loss of your job? Why or why not?

Imagine you are the accountant for Drive Write, a company that produces computer disk drives, and you are in charge of all accounting functions within the company. The president has informed you that if the company's profits grow by 20% this year, you will receive a $20,000 bonus, and she will receive a $50,000 bonus. No bonuses will be awarded if profit growth is less than 20%. Because the company's profits have grown 20% annually for the last 10 years, investors have come to expect significant growth from one year to the next. Near the end of this fiscal year, the president and you have the following conversation: We are awfully close to hitting our numbers and getting to the 20% target. With two weeks remaining, projections show we will come in at 18% for the year. What can we do on the accounting side to increase current year profits? \begin{tabular}{l|l} Accountant: & Well, I'm not sure \\ there is anything we \\ can do. Our \\ accounting is squeaky \\ clean, as confirmed \\ by our independent \\ auditors. Perhaps our \\ sales will improve \\ next year. \end{tabular} There has to be something we can do - I could sure use the bonus money, and our investors would appreciate an increase in their investment! I know we have a large customer order to be filled the first week of next year. Why not include that sale in this year's numbers? \begin{tabular}{|l|l|} \hline Accountant: & Imnotcomfortablerecordingsalesinthewrongfiscalyear. \\ \hline President: & Wereonlytalkingaboutmovingsalesbyafewdays!Iwouldlikeyoutoconsiderthiscarefully.Ifyoucantdothis,Imayhavetofindanaccountantwhocan!Letstalkaboutouroptionslaterthisweek. \\ \hline \end{tabular}