Ethical case: In P Company, a misstatement is discovered that overstated the net income in the prior year’s financial statements. The annual reports containing misleading information were issued to banks and other creditors less than a month ago. When this issue was told to the President of company he asked to adjust current year’s financial statements for last year misstatements. To determine: (a)The stakeholders of the organization (b) The ethical issues (c) The decision to be taken by the controller in the given situation.

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Chapter 4, Problem 4.7BYP

(a)

To determine

Ethical case: In P Company, a misstatement is discovered that overstated the net income in the prior year’s financial statements. The annual reports containing misleading information were issued to banks and other creditors less than a month ago. When this issue was told to the President of company he asked to adjust current year’s financial statements for last year misstatements.

To determine: (a)The stakeholders of the organization (b) The ethical issues (c) The decision to be taken by the controller in the given situation.

To determine

(b)

To determine: The ethical issues

(c)

To determine

The decision to be taken by the controller in the given situation.

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