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Mr. Barry is the management accountant of a company that has a contract with a supplier that is paid on the basis of a percentage

Mr. Barry is the management accountant of a company that has a contract with a supplier that is paid on the basis of a percentage of a volume of a certain product. He has recently found a past error dated three years backs that will have caused a loss to the supplier. Mr. Barry intends to address the issue openly and compensate the supplier directly, however management prefers to adjust the future reports to make up for the difference.

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