Question
QUESTION 6 Shane is the financial accountant in a medium sized manufacturing company and is currently preparing quarterly accounts. He was recently admitted to membership
QUESTION 6 Shane is the financial accountant in a medium sized manufacturing company and is currently preparing quarterly accounts. He was recently admitted to membership of an Irish recognised professional accountancy body. His immediate manager, Deirdre is a forceful, domineering and very ambitious individual. Since Shane commenced employment with the firm over two years ago he has accepted Deirdres advice on the amount of work-in-progress (WIP) to be reported in the accounts. The 2021 year-end draft financial statements reveal that the company will just about meet its business plan financial targets. However, for the current quarter (which incidentally is the last quarter in the current financial year) Deirdre has instructed Shane to report an increase of 100% in work-in-progress (WIP). Shane is overwhelmed by this instruction. REQUIRED Set out the advice you would give Shane with respect to the ethical dilemma he is experiencing. In the context of providing this advice, apply Tuckers 5-Question Model and the American Accounting Associations Decision-Making Model in resolving the issues outlined above.
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