Question
Vu Hung is the assistant chief accountant at Lim Company, a manufacturer of computer chips and cellular phones. The company currently has total sales of
Vu Hung is the assistant chief accountant at Lim Company, a manufacturer of computer chips and cellular phones. The company currently has total sales of $20 million. It is the end of the first quarter. Vu is hurriedly trying to prepare a general ledger trial balance so that quarterly financial statements can be prepared and released to management and regulatory agencies. The credits on the trial balance add up to $1,000 more than the debits. In order to meet the 4:00 p.m. deadline, Vu decides to force the debits and credits into balance by adding the amount of the difference to the Equipment account. She chose Equipment because it is one of the larger account balances. Proportionally, it will be the least misstated. She believes that the difference will not affect anyone's decisions. She wishes that she had more time to find the error, but realizes that the financial statements are already late. Instructions (a) Who are the stakeholders in this situation? (b) What are the ethical issues involved? (c) What are Vu's alternatives?
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