question archive Charlene Clyde, an accountant for Otto Brothers Limited, discovers that her supervisor, Bob Lusk, made several errors last year
Charlene Clyde, an accountant for Otto Brothers Limited, discovers that her supervisor, Bob Lusk, made several errors last year
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Charlene Clyde, an accountant for Otto Brothers Limited, discovers that her supervisor, Bob Lusk, made several errors last year.
Overall, the errors overstated the company’s net income by 20%. It is not clear whether the errors were deliberate or accidental. What should Clyde do?
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Clyde should report the errors to Lusk because Lusk is Clyde's supervisor, and Lusk is responsible for the errors. If Lusk fails to take action, then Clyde should report the errors to Lusk's supervisor in the organization. Clyde should keep going up the chain of command until the errors are corrected. In any event, outsiders who are relying on Otto Brothers Limited's financial statements must be made aware of the need to correct the reported net income figure.
