You are an accountant in the budgetary, projections, and special projects depart
ID: 2477612 • Letter: Y
Question
You are an accountant in the budgetary, projections, and special projects department of Fernetti Conductor, Inc., a large manufacturing company. The president, Richard Brown, asks you on very short notice to prepare some sales and income projections covering the next years of the company's much heralded new product lines. He wants these projections for a series of speeches he is making while on a 2-week trip to eight East Coast brokerage firms. The president hopes to bolster Fernetti's stock sales and price.
You work 23 hours in days to compile the projections, hand-deliver them to the president, and are swiftly but graciously thanked as he departs. A week later, you find time to go over some of your computations and discover a miscalculation that makes the projections grossly overstated. You quickly inquire about the president's itinerary and learn that he has made half of his speeches and has half yet to make. You are in a quandary as to what to do.
Instructions
What are the consequences of telling the president of your gross miscalculations?
What are the consequences of not telling the president of your gross miscalculations?
What are the ethical considerations to you and the president in this situation?
Write a page paper answering the questions above and explaining the situation. Include a introudction, body , and conlcusion paragraph.
Explanation / Answer
The President
Sub- Miscalculation & overstated Conlusions that makes the projections grossly overstated.
1) You must tell each & every situation to the president.The consequences are that he/she will have to determine the best way to re-address those groups he has already presented to.Additionally, if there submission of the information is handled properly, the recipients will view all involved in a very favorable light. You should proper report before submitting to the president meanwhile analyse & interpret all the possible situations, calculations before getting into the conclusions.You will gonna lose your faith & our credibility but president should also analyse your ability to speak truth & positive attitude towards your work.
2) If you donot tell president regarding this may lead to bad results or may be loss of reputation, loss of creditibility issues as the error will going to be to analyse soon by one or another. So its better to report as soon as you knows about this, so that in future it will not going to be adversely affected.
3) It is good to make an error & corrected that as it will make it bigger, you should prepare reports daily basis or you work for whatever the hours, you should not ever lose your competencies & willing to work. One erroe can make your company from high to low, so try to prevent this by doing regular test & analyse of Computation & projections you have made.
In Conclusion, Never hide your mistake as you never know your one mistake will leads to endangered for your company and for you as well. It is always better to check & Analyse before submitted to the higher management or else take some friend in the office to get it checked once.
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