Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tonya Latirno is a staff accountant for Cannally and Kennedy, a local CPA firm in New York. For the past 10 years, the firm

image text in transcribed

Tonya Latirno 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 Tonya behaving ethically by making up the bonus with unnecessary overtime? Yes, Tonya is behaving ethically. No, Tonya is not behaving ethically.

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

Management and Cost Accounting

Authors: Colin Drury

8th edition

978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887

More Books

Students also viewed these Accounting questions

Question

=+b) State the hypotheses.

Answered: 1 week ago

Question

How request a job of full stack developer in particular company

Answered: 1 week ago