Overview

A sales manager has asked you to do something you know isn't right. You don't feel comfortable with this request but aren't sure how to proceed. The company has an established whistleblowing policy, so you are willing to alert management of this issue if need be. You decide to consult an ethical decision tree and follow those steps until you reach a resolution.

Directions

Read the full scenario in the Supporting Materials section; then, write an executive summary outlining how to resolve this dilemma and explain how unethical behavior like this can impact accounting practices in the company.

Specifically, you must address the following rubric criteria:

1. Summarize the steps you would take to resolve the dilemma outlined in the scenario.
2. Recommend a solution to the dilemma outlined in the scenario.
3. Identify the potential impact of this solution.
4. Explain how the unethical behavior requested in the scenario could influence the company's accounting practices.
5. Summarize the importance of a whistleblowing program on detecting ethical violations in this scenario.

You are a CPA working as a staff accountant at a large advertising agency with a calendar year reporting cycle. One of your duties is to post monthly revenue and deferred revenue journal entries. In December, the marketing team secured a contract to develop a television commercial for the next Super Bowl. The contract was signed December 19th, and project development is to begin in January. Accounting principles require the company to record the revenue for the contract as services are performed, which is January. The sales manager comes to you and asks you to record the contract in December to boost revenues for the current year-end. The manager says they will put in a good review for you with leadership and recommend you for promotion. You don't feel comfortable with this request but aren't sure how to proceed. You decide to consult an ethical decision tree and follow those steps until you are comfortable with the resolution.

What to Submit

Submit your executive summary as a 2- to 4-page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to APA style.