Matthew Adair is a manager at a medium-sized company. Adairs annual bonus is based on the companys reported net income as part of a performance-based compensation structure. To increase net income and boost his bonus, he often asks the accountant to adjust financial statement accounts that rely on estimation, such as bad debt. This year, he asked the accountant to reduce the estimate of doubtful accounts by 10%.

How often do you think this situation happens in the real world? That a lower employee is told to do something by upper management, even though it's wrong? The accountant could be in danger of losing their job as Adair could claim the accountant is insubordinate.