ETHICS CASE

A business case Presented to the Accountancy Department De La Salle University

In partial fulfillment Of the course requirements In ACTBAS1 (C31)

Reyes, Christine B. July 15, 2011

In this business case, several actions must be pointed out to make it right as being an accountant or even an assistant chief account for a specific company is a serious job and we must take note that accounting is an art, a science and a discipline. These accounting informations are the key to tell the other people what is happening to their business or stakeholders- the Hokey Company, whether they are gaining or worse, losing. And in order to show it to them, the method or procedure must be done step-bystep. However, in the said scenario, these were not accomplished by Ms. Sarah Rivkin who is the assistant chief accountant for Hokey Company who manufactures computer chips and cellular phones. We can say that it is in Ms. Sarahs etiquette to be responsible enough to gather all the information before hand and to finish them right away and she was not able to do them. Ms. Sarah should correct some minor details such as stating a label of time into quarterly year as according to Consistency Concept, once a method is adopted, it must not be changed from year to year to allow comparability of financial statements between years and between businesses. If she was not able to remember what method decided to use last quarter, by the next period, she might be able to do it with a different method. If I were Ms. Sarah, I will confirm this first before going to the major details of the financial statements to avoid any conflicts with the customer. Ms. Sarah was not objective in her work for not collecting the information which he will be needed for the financial position and other statements. Accountants are required to give evidence to all transactions made by having some documents to be free from personal biases and so that other independent experts can verify the reports. But seeing how Ms. Sarah did the last minute in balancing of ledger, we can assume that

she and only she can understand it, and not the other independent experts since there are no evidence to defend her statement. If I were Ms. Sarah, I will always gather the required information monthly to avoid any problems in the future, doing it step by step and all clear and free from biases. We must also remember that these ledgers will lead us to formulate our financial statements because there are important for the customer to easily understand the details. We must also take note that it is in the accountants hand to make sure that everything is correct. The accountant must not be careless in doing such statements so that he or she doesnt need to repeat the works if there are any corrections need to be made. The accountant will not be having a hard time in doing all the tasks appointed to her if she will just follow the GAAPs and her code of ethics to make accurate, precise, reliable works.