Greg Piff, a new assistant sales manager was faced with a dilemma. His supervisor, Kathleen Holbrook, instructed him to prepare an invoice for $300,000 in the name of General Builders, a regular customer. Upon refusing to comply with the request because no order was received, Holbrook explained to Piff that this was normal practice during the end of the year in order to meet or exceed the annual sales target. Holbrook also clarified that the goods will not be physically delivered to the customer and a reverse entry will be made in the accounting records during the next year.
Piff is unsure about what is to be done because the amount is significant. He recollected that Holbrook had promised to give him a favorable review if he complied with the instruction. Piff has come to seek your advice as a professional, regarding the proper way to handle the situation in order to minimize the effects of any repercussions his actions may have.
Required:
(a) Does Greg have an ethical responsibility to take a course of action?
(b) What course of action would you take? What course of action should Piff take?
(c) Why is it important that such actions are curbed?

Question

Quizplus · Accepted Answer

The Answer of Greg Piff, a new assistant sales manager was faced with a dilemma. His supervisor, Kathleen Holbrook, instructed him to prepare an invoice for $300,000 in the name of General Builders, a regular customer. Upon refusing to comply with the request because no order was received, Holbrook explained to Piff that this was normal practice during the end of the year in order to meet or exceed the annual sales target. Holbrook also clarified that the goods will not be physically delivered to the customer and a reverse entry will be made in the accounting records during the next year.
Piff is unsure about what is to be done because the amount is significant. He recollected that Holbrook had promised to give him a favorable review if he complied with the instruction. Piff has come to seek your advice as a professional, regarding the proper way to handle the situation in order to minimize the effects of any repercussions his actions may have.
Required:
(a) Does Greg have an ethical responsibility to take a course of action?
(b) What course of action would you take? What course of action should Piff take?
(c) Why is it important that such actions are curbed?

Greg Piff, a New Assistant Sales Manager Was Faced with a Dilemma