Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Susan Sharp is a certified public accountant(CPA)and staff accountant for Jones&Jones,a local CPA firm.It had been the policy of the firm to provide a holiday

Susan Sharp is a certified public accountant(CPA)and staff accountant for Jones&Jones,a local CPA firm.It had been the policy of the firm to provide a holiday bonus equal to two weeks' salary to all employees.The firm's new management team announced on November15that a bonus equal to only one week's salary would be made available to the employees this year.Susan thought that this policy was unfair because she and her coworkers planned on the full two-week bonus.The two week bonus had been given for10consecutive years,so it seemed as though the firm had breached an implied commitment.Susan decided that she would make up the lost bonus week by working an extra six hours of overtime per week over the next five weeks until the end of the year.Jones&Jones' policy is to pay overtime at150%of straight time.

Susan's supervisor was surprised to see overtime being reported,since there is generally very little additional or unusual client service demands at the end of the calendar year.However,the overtime was not questioned,since firm employees are on the"honor system"in reporting their overtime.

Discuss the following two issues(be sure to provide reasons for your answer):

(1)--Is the firm acting in an ethical manner by changing the bonus?Explain why or why not.

(2)--Is Susan behaving in an ethical manner?Explain why or why not.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ronald W Hilton

8th Edition

0073526924, 9780073526928

More Books

Students also viewed these Accounting questions

Question

1. Maintain my own perspective and my opinions

Answered: 1 week ago

Question

2. What do the others in the network want to achieve?

Answered: 1 week ago