Question: You are the Controller of a medium-sized oil exploration company in Texas. It is time to make a forecast of the company's annual earnings. You know that some additional losses will be recognized before the company prepares its financial statements. The President of the company has asked you to ignore the additional losses. He argues that the losses have not occurred and the information that you are providing is an estimate, so precision is not required.

A. Discuss the ethical implications of the above scenario. Below are questions that may help guide your discussion. The questions are a guide (a sentence or two answering each question is insufficient). You should provide a well-organized thoughtful discussion of the ethical situation

B. What dilemma does the controller face?

C. What choices does the controller have? Evaluate the choices, i.e. who benefits or who is hurt by the choice(s).

D. What action would you recommend? How would you respond to the President?

E. What should the company do going forward?