Please discuss what Tom Kemper, Controller of Wichita manufacturing facilities,
ID: 2404399 • Letter: P
Question
Please discuss what Tom Kemper, Controller of Wichita manufacturing facilities, should do. Explain your position.All applicable cases are available with McGraw-Hill's Connect Accounting. CASE 9-26 Ethics and the Manager [L09-3] Tom Kemper is the controller of the Wichita manufacturing facility of Prudhom Enterprises, Inc The annual cost control report is one of the many reports that must be filed with corporate head quarters and is due at corporate headquarters shortly after the beginning of the N ew Year. Kemper
Explanation / Answer
In the given case, Tom Kemper shouldn't agree with Ilianovitch. Tom should comply with applicable accounting rules and regulations and should provide the correct figures (as to the values and variances) in the report. Manipulation/Misrepresentation of figures is considered unethical and should be completely avoided as it will provide inaccurate information to the management and other interested stakeholders who generally take corporate level decisions on the basis of such reports. Resorting to such practices can be detrimental to the interests of both the corporation as well as Tom and Ilianovitch. They can both lose their jobs if they are found to be engaged in such wrongful acts. Tom should, however, include the reasons for variances in the report so that the management can get an idea as to why the actual results were not as per expectations and what actions can be taken to avoid such occurences in the future.