Let's say you worked many long hours preparing your operating budget projections. Satisfied that you covered all the bases, you submitted your report to your Vice President. A week later, you reviewed your calculations and found you grossly overstated your projections. What are the consequences of telling your VP? What are the consequences of if you don't tell your VP?
Kimmel, Paul D. (2011) Accounting: Tools for Business Decision Making, (4th Ed). Hoboken, NJ: John Wiley & Sons.
What is your opinion on admitting errors in projections?
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If I found out a week later I had grossly overstated projections I would need to tell my VP immediately. This, of course, has consequences. The first consequence would be allowing my VP to think that I had failed to accurately prepare the projections, due to sloppiness or oversight. In either case, this reflects poorly on my work and will not make my VP think very highly of my work or me. In addition, since the company relies upon my projections for various outputs, it will reflect poorly upon my supervisor and ...
This solution discusses what the consequences are of admitting an error in a budget to a VP, and the consequences of not admitting an error. Includes APA formatted reference.