Accounting Chapter 7 Mini Ethics Discussion: Ethics and professional conduct in business
During the preparation of the bank reconciliation for Regal Concepts Co., Misty Watts, the assistant controller, discovered that Windsor National Bank incorrectly recorded a $15,750 check written by Regal Concepts Co. as $1,575. Misty has decided not to notify the bank but wait for the bank to detect the error. Misty plans to record the $14,175 error as Other Income if the bank fails to detect the error within the next three months. Discuss whether Misty is behaving in a professional manner.