Should Al Harbi follow his boss directive

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Question - The Shaya Company, owner of Dharan Mall, charges Mother Care, Clothing Store a rental fee of $600 per month plus 5% of yearly profits over $500,000.

Abdullah Al Khateeb, the owner of the store, directs his accountant, Fahad Al Harbi, to increase the estimate of bad debt expense and warranty costs in order to keep profits at $475,000.

Instructions - Answer the following questions.

a. Should Al Harbi follow his boss's directive?

b. Who is harmed if the estimates are increased?

c. Is Mr. Al Khateeb's directive ethical?

Reference no: EM132844506

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