Case study Essay Example | Topics and Well Written Essays - 1250 words - 19

Case study - Essay ExampleLisa mate with Mr. Anderson the ascendancy of acquired firm. She asked for several financial records from Mr. Anderson. Lisa has found some discrepancies into those records and wanted more details but unfortunately she did not get enough support.Here in this end identified good issue is improper way of managing accounting practices from the side of the acquired community. Here in this case Prestige Fragrance Company has intentionally and suspiciously inflated two accounts in their balance sheet. Those two accounts are otherwise Assets and Other accrued liabilities. Here in this case the acquired company has not disposed(p) enough documents related with the other assets section. Review conducted by Lisa has categorically indicated that the acquired company has unethically capitalized marketing expenses. The organization has save marketing expenses as the asset. It should have been recorded in the expense section. It indicates that to inflate the financ ial situation Prestige Fragrance Company has intentionally used unethical accounting practices to create more encourage for the firm. It is a clear cut ethical breach from the side of Prestige Fragrance Company. The company has continued its unethical accounting practices in case of Other accrued liabilities also. When Lisa has asked for the all journal entries related with Other accrued liabilities, Mr. Anderson totally declined to give any details to Lisa. It further reinforces the presence of ethical issue. This attitude of Mr. Anderson has distinctly indicated that, he wants to cover up something and for that reason only he is not willing to provide all the documents to Lisa. Hiding something from the finance manager of the parent company is also a clear cut ethical issue which is present in the current case.There are several stakeholders are related with the ethical issues. The whole accounting procedure is