Reference no: EM132190247

Assume you are the president of a division of a large organization. Your division has not been as profitable as required by the home office. You know the home office is going to close the division unless your division shows a profit margin of 25% this year, well above the industry average. It will be difficult if not impossible to reach this goal in the current year. You are really angry because closing the division will cost people their homes and jobs in a community that really needs employment opportunities. Besides, the home office is just being greedy. You are good friends with the Controller of your division and she wonders if certain expenses could be accounted for as fixed assets. This would increase the divisions income enough to reach the desired goal of a 25% profit margin. Even though this is against internal company policy and Generally Accepted Accounting Principles, she assures you no one will notice and it will allow you to meet the 25% profit margin goal for the year. Taking this action will save the division, the jobs of all the employees and best for all the community members.

You decide to follow the advice of your Controller and cook the books, justify your actions based on teleological principles. A paragraph should be sufficient to answer this question.