Tonya Latino is a staff accountant for Cannally and Kennedy, a local CPA firm in New...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6656bb3cbc567_0606656bb3c569ca.jpg)
Transcribed Image Text:
Tonya Latino is a staff accountant for Cannally and Kennedy, a local CPA firm in New York. For the past 10 years, the firm has given employees a year-end bonus equal to two weeks' salary. On November 15, the firm's management team announced that there would be no annual bonus this year. Because of the firm's long history of giving a year-end bonus, Tonya and her coworkers had come to expect the bonus and believed that Cannally and Kennedy had breached an implicit agreement by discontinuing the bonus. As a result, Tonya decided that she would make up for the lost bonus by working an extra six hours of overtime per week for the rest of the year. Cannally and Kennedy's policy is to pay overtime at 150% of straight time. Tonya's supervisor was surprised to see overtime being reported, because there is generally very little additional or unusual client service demands at the end of the calendar year. However, the overtime was not questioned, because employees are on the "honor system" in reporting their work hours. Is Cannally and Kennedy CPA firm acting in an ethical manner by eliminating the bonus? Yes, Cannally and Kennedy CPA firm acts in an ethical manner. No, Cannally and Kennedy CPA firm does not act in an ethical manner. Tonya Latino is a staff accountant for Cannally and Kennedy, a local CPA firm in New York. For the past 10 years, the firm has given employees a year-end bonus equal to two weeks' salary. On November 15, the firm's management team announced that there would be no annual bonus this year. Because of the firm's long history of giving a year-end bonus, Tonya and her coworkers had come to expect the bonus and believed that Cannally and Kennedy had breached an implicit agreement by discontinuing the bonus. As a result, Tonya decided that she would make up for the lost bonus by working an extra six hours of overtime per week for the rest of the year. Cannally and Kennedy's policy is to pay overtime at 150% of straight time. Tonya's supervisor was surprised to see overtime being reported, because there is generally very little additional or unusual client service demands at the end of the calendar year. However, the overtime was not questioned, because employees are on the "honor system" in reporting their work hours. Is Cannally and Kennedy CPA firm acting in an ethical manner by eliminating the bonus? Yes, Cannally and Kennedy CPA firm acts in an ethical manner. No, Cannally and Kennedy CPA firm does not act in an ethical manner.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Using the following information, compute the amount of cash provided by (used in) investing activities: Cash from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
-
A ____________ links key goal-related issues with key collaboration issues to come up with general ways by which the firm will manage its affairs. (a) managerial philosophy (b) cultural symbol (c)...
-
Variance analysis, non manufacturing setting Stevie McQueen has run Lightning Car Detailing for the past 10 years. His static budget and actual results or June 2011 are provided below. Stevie has one...
-
41. (5 points) Okoye Inc. manufactures machine parts for aircraft engines. A subcontractor has requested Okoye to provide 4,100 units of part PQ107 at a price of $450,000. If Okoye produces part...
-
Smithen Company, a wholesale distributor, has been operating for only a few months. The company sells three products-sinks, mirrors, and vanities. Budgeted sales by product and in total for the...
-
1. Given the schedules for supply and demand #1 shown below: A. plot, draw, and label supply and demand curves and estimate Pe and Qe. B. if the government sets a price floor for this product at $8,...
-
What are 5 most important characteristics of the ideal organization that you would like to be a part of, and why? What do these ideal characteristics show about your personal instrumental and...
-
Describe the characteristics and operating methodology of the Philadelphia International and Austin-bergstrom International Airport. Provide an analysis of the management and operational differences...
-
Suppose Ralph and Ed have the only store that sells toilet bowls in northern Maine. Their nearest competitor is 211 miles away, and these two men have a reputation for producing high-quality toilet...
-
Read the articles. These articles contain examples of calculating opportunity costs. You will follow these examples to answer one of the questions listed at the bottom of the topic. 1....
-
The random variable Q has PMF P,(q) = {, q = 2, 4, 8, ... O, otherwise a) What is the value of constant a? b) Draw the PMF of RV Q c) Draw the CDF of RV Q d) Can you write the piecewise expression...
-
Kayne West's accounting year-end is on 31 December. On 1 January 2007 he purchased a vehicle for 1,000 with an expected useful life of three years and an estimated residual value of 343. Required 1...
-
Mr Flo Rida owns a small factory and uses the reducing balance method of depreciation for plant, with a 60 percent write off each year, and maintains a plant account to record all entries concerning...
-
Northeast Drycleaning Service Ltd has the following accounts on 31 May 2007: On 31 December 2007, half the machinery and plant was sold for 190,000 cash. The disposed machinery and plant was...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App