Saira Ortiz has been a manager at Qwikall a large telecommunications company for ten years. She has worked very hard but she had to take two unpaid leaves of absence to assist her sick mother and then later she took unpaid leave when her children needed care. As a result she has received only two promotions during that time. She realizes that she probably will not receive any more promotions since the company views her as somewhat unstable.
Last week a newly promoted manager bragged that he could just "sniff out" accounting errors. Saira angered at his arrogance deliberately recorded sales salaries as rent expense. Other accountants were present when she did so. The dollar amounts of her changes were not significant.
Required:
Has there been a violation of ethical standards? Explain.

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BINOY RAJESH · Accepted Answer

Final Answer : There has certainly been a violation of integrity. Saira has no right to let her personal animosity toward a fellow employee cause her to misrecord journal entries. The fact that others knew of her actions does not make what she did right-in fact it causes them to be accomplices. Even though the amounts are not significant and net income is not affected Saira's action is wrong. There is also reason for concern that Saira's frustration will show itself in more serious forms of sabotage.

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