Dan Lanier is a certified public accountant (CPA)and staff accountant baker and Lin, a local CPA firm.

Dan Lanier is a certified public accountant (CPA)and staff accountant baker and Lin, a local CPA firm. It had been the policy of the firm to provide a holiday bonus equal to two weeks salary to all employees. The firm’s new management team announced on November 25 that a bonus equal to only one week’s salary would be made available to employees this years. Dan thought that this policy was unfair because he and his co-workers planned on the full two-weeks bonus. The two- weeks bonus had been given for 10 straight years, so it seemed as thought the firm had breached implied commitment. Thus, Dan decided that he would make up the lost bonus by working extra six hours of overtime per week over the next five weeks until the end of the year. Baker and lin’s policy is to pay overtime 150% of straight time. Dan’s supervisor was surprised to see overtime being reported, since generally very little additional or unusual clients service demands at the end of the calendar year. However, the overtime was not questioned, since the firm employee are on the “honor system” in reporting their overtime. Discuss whether the firm is acting in an ethical manner by changing the bonus. Is Dan behaving in an ethical manner?

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