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Issue: Steve Waller is the corporate accounting manager for Giant Video Stores. As part of the budgeting process for the entire corporation, he has asked

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Issue: Steve Waller is the corporate accounting manager for Giant Video Stores. As part of the budgeting process for the entire corporation, he has asked the manager of each video store to prepare a store master budget. The manager of one of the largest stores, Jeff Miller, decides to understate the sales budget and overstate all the budgets related to expenses. Jeff believes this is a more conservative approach than using the estimated numbers he honestly belleves will be achleved for the year. He also thinks that the corporate office will look more favorably on his store's actual achievements when they are subsequently compared to this budget Jeff has asked Lisa Dorton, his assistant manager, to review the budget beforeit is submitted. Lisa is aware of the real estimates that Jeff made Questions to be Answered: 1. What is the impact of Jeff Miller's budget for the corporation? 2. What ethical issues face Lisa Dorton

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