discussion assignment 33

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Intermediate Accounting:

In this discussion assignment, you are a partner in an accounting firm that has been contracted by a startup company to prepare its accounts and tax returns. As the startup company has grown, the production manager allows employees to buy the company’s goods. However, these sales to employees are processed outside the company’s accounting system. The gains from employees’ purchases are held to fund the company’s holiday party.

In your discussion, you are to address the following issues:

  • Would this practice of omitting income from staff sales result in misleading financial statements?
  • Is the practice dishonest?
  • What should be your involvement?
  • How should you act in order to protect your reputation, you firm’s reputation, and the reputation of your profession?

Answer these questions in one page, and you need to use at least one source APA.

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