Required Ethics
Paul Gates is the Division Controller and Bill Allen is the Division Vice President of Charlotte Computer Inc. Due to pressures to meet earnings estimates for 2013, Allen instructs Gates to record as revenue $5,000,000 of orders for computers that are still in production and will not be shipped until January 2014.
Required:
1. Using the IMA’s Standards of Ethical Conduct as a guide, what are Gates’ ethical responsibilities in this matter?
2. What should Gates do if Allen does not acquiesce and still insists that he record the revenue in 2013?
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