Lee is the accountant of a large company with three major operating divisions. Lee's son works part-time in the company's Leisure Division.

The Leisure Division is failing to reach its performance targets. The Leisure Division manager, Mandy, is worried that senior management will reduce staffing levels in the Leisure Division so she suggested that Lee could change the allocation of computer processing costs to increase the Leisure Division's profit. She stressed that is Lee did not comply his son would probably lose his part-time job.

Lee identified the key stakeholders as the employees of Leisure Division and managers of other divisions.

Required

Investigate potential ethical outcomes for the proposal to change an accounting method. You should consider the stakeholders identified by Lee (and only those stakeholders) and evaluate the outcome in terms of objectivity as defined in the APES 110 Code of Ethics for Professional Accountants.

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