You are the head of the Accounting Department in a medium size company. The company has experienced a decline in sales in the current year andfacing a net loss. Near the end of the business year, in an attempt to increase/boost profits, top company executives ask you to initiate and document the shipment of a large portion of company inventory to another company in a distant city.

You are to record the shipment as a sale, even though you know that the other company will return the inventory shortly after the year end.

1.What violation of ethics has occurred?

2.What ethical dilemma do you face- if you agree to the proposed plan?

3.What result might occur if you refuse to go along with the plan?

4.What would you do?

5.Assume it is a public company?Assume it is a private company?Would your response be different?