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Environmental Accountant

Real-Life Activities

Real-Life Decision Making -- Solution

You keep your concerns quiet.

You complete the financial statement as requested by the company. A few months later, the fuel tanks the company installed to save money start to leak and contaminate local groundwater. The corporation has put no money aside to cover environmental cleanup. Profits plummet.

Shareholders are outraged. They say the company should have been honest about the situation, and it was up to the auditors to have made some indication of the problem in the financial statements. It's a mess, and your firm is tarnished by its involvement.

Environmental auditor Kim Shaikaze says he's never faced a situation where a company was hiding information or trying to fudge the numbers. If they were, he'd be sure to qualify his audit.

"That's easy to say," he admits, "but it's difficult. This is not an easy decision." Shaikaze says some jurisdictions have "whistle-blower" protection legislation. Under that law, a company can't fire you if you report environmental wrongdoings.