Linbarger Company Effective financial reporting

This research analyses a scenario concerning financial reporting in Linbarger Company. It emphasizes on the professional misconduct and the unethical concern experienced by the company, in the extent of financial reporting (Gaa, James and Linda, 1). Unprofessionalism and unethical misconduct undermine the value and effectiveness of financial reporting. Incorrect financial reporting may result in legislation, as the company would be sued for damages and fraudulent misrepresentation (Carpenter, Tina and Jane 115). Accounting problem evident To begin with, the accounting problem experienced by Linbarger Company is cash management problems. The art of asking her to extend the financial reporting for an extra day, to maintain the agreement with the insurance company is unethical. She makes it look like a command, not a request and fails to consider the replications or honours the assistant integrity.

The use of power to get what one wants to be done is unprofessional (Gaa, James and Linda, 3). In addition, she is weak as a financial deputy manager, as she fails to ask for payment from a huge customer, Oconto Distributors, in advance. She waits until it is too late, showing her high levels of unprofessionalism. You may be required to cater for the fine, be fired, be demoted or suspended. Due to the breach of contract, the insurance company may demand full repayment of the loan, causing financial crises in the company (Foster, John and Fred, 119). The company may even close due to the inadequacy of finances to fund its operations. Impacts of compliance If one complies with Lisa’s command, both persons would be affected by the move.

Lisa, being the financial vice president is required to evaluate and emphasize the financial reporting standards and techniques (Chen, 227). However, I would recommend Lisa to communicate with the insurance company and explain to them the situation. In the meantime, I would advise her to request a faster mode of payment by the customer, like an electronic money transfer. This is because a check may not have reflected in the bank in one day, as it usually takes longer in some banks. The customer may as well use an online money transfer, which is very fast and reliable. I would also explain to her the dangers of exercising what she would be asking me to do. NYU Press, (2009): 119-129 Gaa, James C.