Question

In: Accounting

Lisa Deuel is a certified public accountant (CPA) and staff accountant for Bratz and Bratz, a...

Lisa Deuel is a certified public accountant (CPA) and staff accountant for Bratz and Bratz, a local CPA firm. It had been the policy of the firm to provide a holiday bonus equal to two weeks' salary to all employees. The firm's new management team announced on November 15 that a bonus equal to only one week's salary would be made available to employees this year. Lisa thought that this policy was unfair because she and her coworkers planned on the full two-week bonus. The two-week bonus had been given for 10 straight years, so it seemed as though the firm had breached an implied commitment.

Thus, Lisa decided that she would make up the lost bonus week by working an extra six hours of overtime per week over the next five weeks until the end of the year. Bratz and Bratz's policy is to pay overtime at 150% of straight time. Lisa's supervisor was surprised to see overtime being reported, since there is generally very little additional or unusual client service demands at the end of the calendar year. However, the overtime was not questioned, since firm employees are on the 'honor system' in reporting their overtime.

Discuss whether the firm is acting in an ethical manner by changing the bonus. Is Lisa behaving in an ethical manner?

Solutions

Expert Solution


Related Solutions

Sarbanes–Oxley Act Compliance As a Certified Public Accountant (CPA), Certified Internal Auditor (CIA), and Certified Information...
Sarbanes–Oxley Act Compliance As a Certified Public Accountant (CPA), Certified Internal Auditor (CIA), and Certified Information Systems Auditor (CISA) you have been asked to perform an audit of company records in support of the Attest function to verify the annual statements. The inventory balances from the computerized system are reported to be $121 million, but reports from field auditors show that balances are severely overstated. In discussions with employees and managers, you find some overlap in functions with certain personnel...
Sarbanes–Oxley Act Compliance As a Certified Public Accountant (CPA), Certified Internal Auditor (CIA), and Certified Information...
Sarbanes–Oxley Act Compliance As a Certified Public Accountant (CPA), Certified Internal Auditor (CIA), and Certified Information Systems Auditor (CISA) you have been asked to perform an audit of company records in support of the Attest function to verify the annual statements. The inventory balances from the computerized system are reported to be $121 million, but reports from field auditors show that balances are severely overstated. In discussions with employees and managers, you find some overlap in functions with certain personnel...
Imagine that you are a certified Public Accountant (CPA) with a new client who needs an...
Imagine that you are a certified Public Accountant (CPA) with a new client who needs an opinion on the most advantageous capital structure of a corporation. Your client formed the corporation in question to provide technology to the medical profession to facilitate compliance with the Health Insurance Portability and Accountability Act (HIPAA). Your client is very excited because of the ability to secure several significant contracts with sufficient capital. Rearch the advantages and disadvantages of debt for capital formation versus...
Imagine that you are a Certified Public Accountant (CPA) and your client has asked for your...
Imagine that you are a Certified Public Accountant (CPA) and your client has asked for your help in mitigating or eliminating the potential estate tax liability for the property the client owns, in order for the taxpayer to pass the property to heirs at the lowest possible tax rates. Analyze the options that may be open to your client and propose a strategy to mitigate or eliminate the client's potential tax liability.
For Problems 1-3, the average annual salary of a Certified Public Accountant (CPA) in one region...
For Problems 1-3, the average annual salary of a Certified Public Accountant (CPA) in one region is $87,000 with a standard deviation of $6300. 3. Suppose that a random sample of 36 CPAs has the same mean as the regional average. Find the probability that the sample mean is less than $85,500.
For Problems 1-3, the average annual salary of a Certified Public Accountant (CPA) in one region...
For Problems 1-3, the average annual salary of a Certified Public Accountant (CPA) in one region is $87,000 with a standard deviation of $6300. 1. Find the probability that a randomly selected CPA makes more than $105,000. Use a bell curve to display the probability area.
For Problems 1-3, the average annual salary of a Certified Public Accountant (CPA) in one region...
For Problems 1-3, the average annual salary of a Certified Public Accountant (CPA) in one region is $87,000 with a standard deviation of $6300. 1. Find the probability that a randomly selected CPA makes more than $105,000. Use a bell curve to display the probability area.
How to become a Certified Public Accountant?
How to become a Certified Public Accountant?
Income statement preparation   On December​ 31, 20192019​, Cathy​ Chen, a​ self-employed certified public accountant​ (CPA), completed...
Income statement preparation   On December​ 31, 20192019​, Cathy​ Chen, a​ self-employed certified public accountant​ (CPA), completed her first full year in business. During the​ year, she charged her clients $ 366 comma 000$366,000 for her accounting services. She had two​ employees, a bookkeeper and a clerical assistant. In addition to her monthly salary of $ 8 comma 050$8,050​, Ms. Chen paid annual salaries of $ 48 comma 500$48,500 and $ 35 comma 800$35,800 to the bookkeeper and the clerical​ assistant,...
​Felicia, a certified public accountant​ (CPA), runs her own consulting firm. Last​ year, she spent​ $24,510...
​Felicia, a certified public accountant​ (CPA), runs her own consulting firm. Last​ year, she spent​ $24,510 on student​ employees, plus had another​ $81,000 in administrative expenses​ (e.g. utilities,​ insurance, rent). She pays herself a salary of​ $50,000. Because she is a​ CPA, Felicia could be employed alternatively as a​mid-level manager in a large accounting​ firm, making a salary of​ $96,780 a year.   Last​ year, Felicia’s accounting costs were ​(Enter your response as an integer.​) Last​ year, Felicia's economic costs were...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT