Maria Mendez It a division controller and James Dalton Is division manager of the Hestor Shoe Company. Mendez has line responsibility to Dalton, but she also has staff responsibility to the company controller. Dalton is under severe pressure to achieve the budgeted division Income for the year. He has asked Mendez to book $200,000 of revenues on December 31st. The customers\' orders are firm, but the shoes are still In the production process. They will be shipped on or around January 4th. Dalton says to Mendez, \"The key event is getting the sales order, not shipping the shoes. You should support me, not obstruct my reaching division goals.\" Describe Mendez\'s ethical responsibilities. What should Mendez do if Dalton gives her a direct order to book the sales? Solution 1. Mendez ethically responsible unlike other general business positions in a company, accountants are also bound both by the rules of their organization and by the professional standards of the accounting industry. Accountants have ethical responsibilities to many different parties, both internal and external to the company.AS she know that the event is not related current period so it can not to termed as sales for that cycle. She should refuse to book that entry not saying directly no to controller but by providing reasoning that revenue normally book only if transaction full fill three conditions. 1. Risk and reward transferred to buyer 2. No uncertainty relating to payment 3. Ownership of goods transferred. But product is not yet manufactured so Mendez can deny the sales entry by providing this practical reasoning. 2. If Mendez received direct order to book sale entry from controller First Mendez need to convince Dalton for not forcing to pass this entry as this is not correct booking. Second she can move to next level and discuss the issue with all supporting reasoning. In terms of ethics accountant are assumed to follow integrity in their professional work and behaviour because anything away from that question dignity of accountant or finance professional across .

1. Maria Mendez It a division controller and James Dalton Is division manager of the Hestor Shoe
Company. Mendez has line responsibility to Dalton, but she also has staff responsibility to the
company controller. Dalton is under severe pressure to achieve the budgeted division Income for
the year. He has asked Mendez to book $200,000 of revenues on December 31st. The customers'
orders are firm, but the shoes are still In the production process. They will be shipped on or
around January 4th. Dalton says to Mendez, "The key event is getting the sales order, not
shipping the shoes. You should support me, not obstruct my reaching division goals." Describe
Mendez's ethical responsibilities. What should Mendez do if Dalton gives her a direct order to
book the sales?
Solution
1. Mendez ethically responsible unlike other general business positions in a company,
accountants are also bound both by the rules of their organization and by the professional
standards of the accounting industry. Accountants have ethical responsibilities to many different
parties, both internal and external to the company.AS she know that the event is not related
current period so it can not to termed as sales for that cycle.
She should refuse to book that entry not saying directly no to controller but by providing
reasoning that revenue normally book only if transaction full fill three conditions.
1. Risk and reward transferred to buyer
2. No uncertainty relating to payment
3. Ownership of goods transferred.
But product is not yet manufactured so Mendez can deny the sales entry by providing this
practical reasoning.
2. If Mendez received direct order to book sale entry from controller
First Mendez need to convince Dalton for not forcing to pass this entry as this is not correct
booking.

2. Second she can move to next level and discuss the issue with all supporting reasoning. In terms
of ethics accountant are assumed to follow integrity in their professional work and behaviour
because anything away from that question dignity of accountant or finance professional across