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You are employed as an accountant for Innovative Computing. Your company is in the process of signing a large contract with an electronics components supplier. You have a friend who works for the electronics components supplier, and you are aware of the company having trouble paying bills. Explain why you should, or should not report, this to your employer before the purchase.

User Isolde
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2 Answers

2 votes

Final answer:

It is important to report any knowledge of the electronics components supplier having trouble paying bills to your employer. Reporting enables your employer to assess the financial stability and reliability of the supplier, reducing the risk of potential financial loss for your company. Reporting this information demonstrates professionalism and ethical responsibility as an accountant.

Step-by-step explanation:

As an accountant for Innovative Computing, it is your responsibility to ensure the financial well-being of your company. Therefore, it is important to report any relevant information to your employer, including the knowledge of the electronics components supplier having trouble paying bills. By sharing this information, you help your employer make an informed decision about entering into a contract with the supplier.

Reporting this information is essential because it enables your employer to assess the financial stability and reliability of the supplier. If the electronics components supplier is facing financial difficulties, there is a risk that they may not be able to fulfill their obligations under the contract, resulting in potential financial loss for your company.

By reporting this information, you are acting in the best interest of Innovative Computing and demonstrating your professionalism and ethical responsibility as an accountant.

User Andrew Hershberger
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3 votes

Answer:

You should report this to your boss. because you have a confidentiality contact and interest conflict.

User Deathlock
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