You have been the manager of a local restaurant for the past five years. Because of increased competition, you notice you’re getting fewer customers….

You have been the manager of a local restaurant for the past five years. Because of increased competition, you notice you’re getting fewer customers. Despite all your attempts to attract new customers and cut costs, the restaurant’s profitability continues to decline. The restaurant owner tells you that if this year’s profit is lower than last year’s, you’ll lose your job.When preparing financial statements at the end of the year, you notice that this year’s profit is lower. You know that by purposely understating certain expenses, you can falsely report higher profits to the owner for this year. That will allow you to keep your job for at least one more year and look for a new job in the meantime.What should you do? What if you really believe the lower profitability is caused by factors outside your control? Would this make the false reporting acceptable?
The situation is very much related to personal ethics. When I saw the company is incurring loss Iwill try to convey the same to the owner. Because lying will damage the trust he had in me for…

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