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Cindy Putman's Case Summary

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Cindy Putman found a bank reconciliation error and brought it to the attention of the owner. Mr. Wheeler told her not to notify the bank of the error but to fix it in their books. Cindy did what she was told and kept quite. Later on the IRS found this unusual entry and charged the company with tax invasion. They found the debit in Retained Earnings, which is where Mr. Wheeler to her to put it. He told the IRS though that he had no idea about this and that Cindy never comes to him when there is a problem. In a private conversation, Mr. Wheeler told Cindy to plead ignorance, and if she didn’t they would both go down together. He also brought up the raise when they talked. I don’t think that Cindy should listen to what her boss said.…show more content…
If you were being professional, the bank should have been informed in the first place but since that didn’t happen she should tell the IRS now. You need to honor the public’s trust; if you get caught lying how is the public going to trust you? No one is going to want to do business with a person/company that isn’t truthful. To earn the trust of the public and to show that Cindy is professional is another reason to tell the…show more content…
Another pro would be that she is following the code of conduct for a CPA. On the other hand, Cindy could possible lose her job. Even though she told truth in the end she still went along with it for however long it was until the mistake was caught. An additional con is that if she does lose her job; another company/firm might not hire her because she didn’t tell someone about this earlier. In the end I think that Cindy needs to inform the IRS about what happened. I believe that the codes of responsibility and public interest can support why it makes sense for Cindy to tell them, since she is CPA. I also believe that pros out weight the cons, even though the con could be not having a job. If you follow the conduct for being CPA, it’s going to make you look better. Some company might be able to over look the fact she made the entry because she in the end she knew what was
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