Unfortunately, during bad economic times, and a fear of job loss, company executives are more likely to ask an accountant to "cook the books." If a boss or manager should ask a staff accountant to change data to make the firm's financial position look better in the eyes of investors, what are the accountant's alternatives?
A)According to the FASB (Financial Accounting Standards Board) ruling says if the boss agrees to sign-off on accounting documents, the accountant is safe from prosecution.
B)According to the FASB, as long as you are not a certified internal auditor, you will not be held accountable for such actions.
C)As a professional, the accountant is held to the standards of generally accepted accounting principles and the FASB. If these guidelines are not followed, the accountant is potentially liable for illegal and unethical behavior.
D)Investors use a variety of methods to determine if a firm is fundamentally sound, so they are less likely to grimace at your actions as the

Question

Quizplus · Accepted Answer

As a professional accountant, the best alternative is to follow the generally accepted accounting principles and the FASB guidelines. If the boss or manager asks the accountant to change data to make the financial position look better, it is potentially illegal and unethical behavior. The accountant should refuse to comply with the request and report the situation to higher authorities if necessary. Choosing options A or B may not provide sufficient legal protection and can lead to serious consequences for the accountant. Option D suggests that investors may overlook unethical behavior, which is not a correct or responsible approach for a professional accountant.

Unfortunately, During Bad Economic Times, and a Fear of Job