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Environmental Accountant

Real-Life Activities

Real-Life Decision Making

You work as an auditor specializing in environmental issues for a large public practice accounting firm. A large public corporation has asked your firm to audit its financial statements.

The company wants to show its shareholders a two percent savings in the cost of fuel that came when it installed underground bulk storage tanks. By your calculations, that two percent savings is eliminated by the cost of environmental protection measures the company must pursue to make sure that fuel never seeps into the surrounding groundwater.

The corporation is insisting on a certain accounting treatment in its financial statement that does not include this environmental cost. You think it would be misleading to the shareholders.

You have the option of qualifying your audit report -- called "going to the wall" in business circles. Yet this may anger the company and your firm might be fired.

This is an important contract because of the size of the company. But you also have a duty to the shareholders to say what you believe.

What do you do?