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Pages:
3 pages/≈825 words
Sources:
3 Sources
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Case Study
Language:
English (U.S.)
Document:
MS Word
Date:
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Topic:

Litigation, Censures, and Fines: The ACC KarParts Company

Case Study Instructions:

Week 8 Assignment - Litigation, Censures, and Fines
Overview
You are the accountant for ACC KarParts, a thriving company that makes auto parts. You oversee all accounting functions within the company. Quinn, your supervisor, has informed you that if the company's profits grow by 30% this year, you will receive a $30,000 bonus, and she will receive a $60,000 bonus. No bonuses will be awarded if profit growth is less than 30%. Near the end of this fiscal year, the two of you have the following conversation:
Quinn: We are getting close to 28% profit by the end of this year. If this happens, neither you nor I will get any bonus. What can be done to reach our target and get our bonus?
You: There is nothing we can do to reach 30% profit this year. However, we can plan to reach that target next year.
Quinn: If we claim some of the next year revenues to be part of the current year, you will get your bonus, I will get mine, and the investors will be happier. Therefore, everybody will be happy.
You: Uh, Quinn, that would be an unethical action.
Quinn: We are simply moving revenue from one period to another. We are not faking the revenue transactions.
As an accountant, what would you do in this situation?
Instructions
Write a 2–3 page report explaining to Quinn why you can't move revenue from one period to another. In the report:
Explain the importance of ethics in accounting.
Apply ethical principles and professionalism to the case at ACC KarParts.
Based on generally accepted accounting principles, recommend at least three acceptable legal alternatives to meet company goals.
Use three sources to support your writing. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source page at least one time within your assignment. For help with research, writing, and citation, access the library, or review library guides.
This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.
The specific course learning outcome associated with this assignment is:
Evaluate a business's accounting system for compliance with accounting principles, regulations, and ethical business practices.

Case Study Sample Content Preview:

ACC KarParts Company
Name
Department, Institution Affiliation
Course Code; Course Name
Instructor's Name
Date
ACC KarParts Company
ACC KarParts case is an actual situation that determines the necessity of ethics in accounting. It also focuses on the valid procedures and precautionary measures that the accountants must consider to remain objective and trustworthy. The paper addresses the case of ACC KarParts by summarizing the importance of ethics in accounting, upholding professionalism, and providing accurate and legal advice to Quinn, the supervisor.
Ethics and Accounting
Ethics plays a critical role in shaping the accounting profession and activities. Accountants play a crucial role since they deal with organizations' financial details, which requires them to uphold a high level of ethics. Ethical codes are specific principles used by accountants to maintain fairness, honesty, and trust (Duska et al., 2018). Unfortunately, not every individual who works as an accountant upholds ethical principles. Ethics are vital in the accounting profession to enhance objectivity and independence. Independence and ethics are used as one entity in the accounting profession. As shown in the case study, a lack of independence would allow an accountant to make biased decisions. Unbiased decisions are critical since they would benefit the customers and eliminate conflict of interest. Therefore, for an accountant to remain independent and objective, it is advisable to use ethical principles and codes.
Additionally, ethics promotes integrity in accounting. Integrity is the ability of an accountant to be honest, and straightforward in every financial activity that they conduct. Accountants need to uphold integrity by not linking themselves with any misleading or false information (Kiradoo, 2020). Ethics allow accountants to show transparency and give accurate data information, thus upholding integrity. Ethics also promote confidentiality in accounting. The accounting profession is critical and has information that should be kept confidential from unauthorized parties. Therefore, every accountant's key responsibility is to ensure they do not engage in any activity that may jeopardize the information. Lastly, ethics helps accountants to embrace professional behavior. It allows the accountants to comply with the regulations and laws governing bodies of work and jurisdictions. Therefore, ethics play a significant role in shaping the accounting profession, and advice to Quinn would be given considering ethical principles.
Ethical Principles and Professionalism
The ethical principles provided by AICPA are fundamental and can be considered for the ACC KarParts' case. The principles are essential sinc...
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