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July 3rd, 2019

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This week we continue to build our understanding of ethical accounting practices by examining the intersection of business and accounting practices by examining the ethical responsibilities of accountants when encountering company procedures affecting the accounting function, and its related responsibilities.

Considering differing bases for accounting (cash, accrual) available,

Discuss the legal rights, responsibilities, and liabilities involved when the accounting function is asked to take action(s) that may be inconsistent with the accounting basis that the company has traditionally used.
Does it matter if this is a “one-time” shift, or not?
Would it matter if the shift were not disclosed to the company’s lenders or the SEC? Why or why not?

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