Financial Reporting Ethics in The Workplace Questions

Then, read the Ethics Challenge Case 1-7 on page 63 in your text. Answer the following questions below.

Question 1: What made the CEO decide on reporting only the 4 ratios?

Question 2: What are the possible consequences of the CEO’s reporting decision?

Question 3: As controller, what advice would you give the CEO regarding his/her disclosure?

Question 4: What actions would you advise the company to take now? (and going forward)

Required:

a. Why do you think the CEO decided to report these 4 ratios instead of the 11 ratios that you prepared?

b. Comment on the possible consequences of the CEO’s reporting decision.

Prof. Angela

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