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Tannell Johnson is an accounting software consultant at Fipps and Associates Consulting. Fipps is a value added reseller of accounting software for midsize companies, which normally have revenue between 50 million and 500 million dollars. One of Johnson responsibilities is to solicit new client companies and to meet with their management to recommend the best accounting software system for them. Midmarket accounting software typically offers several modules that the client may choose from. For example, not all clients would need an e-business module for their accounting software. Since part of Johnson compensation is a percentage of software sales and consulting revenue that he generates, what are the ethical conflicts he faces when soliciting new clients and recommending software and software modules?
The taxable income for Botsal Inc. (Botsal) for the 2007 taxation year was $624,000. All taxable income was generated from business activities with the exception of $2,000 in foreign interest income on which tax of 10% was withheld.
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