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Full and Fair Reporting

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Step 1

The ethical problems that Jenny faces are that:
If she insists on $1200,000 write down, in most probability the bank would be liquidated.
On the other hand if it does not write down $1200, 000 then it would lead to material misstatement in the accounts.

My suggested action is the Jenny should follow the deontological ethical approach and follow her duty. She should recommend that the bank write down $1,200,000. If Larry fires her she should accept the consequences as a part of her ...

Solution Summary

Full and Fair Reporting is discussed in great detail in this solution.