LP9.1 Assignment: Accounting

LP9.1 Assignment:Read Ethical Issue 20-1 on page 1007. Write a 650-word report answering the following questions:Mary tan is the controller for Duck Associates a property management company in Portland. each year Tan meets with external auditor about payroll accounting. The auditor suggest that they outsource the payroll accounting to a specialize in payroll. This would allow tan to focus on the primary responsibility accounting for the property under management. At present payroll has 1.5 employee positions.the current payroll software was purchased for 4000 three year ago would go away.Duck bookkeeper would spend half her time preparing the weekly payroll input form that is given to the processing service she is paid 450 a week.Would no longer need the payroll clerk and sale $42,000The processing service would cost 2,000 a month.Requirement1.Would outsourcing the payroll function increase or decrease Duck Associates’ operating income?2.Tan believes that outsourcing payroll would simplify her job, but she does not like the prospect of having to lay off Stock, who has become a close personal friend. She does not believe there is another position available for Stock at the current salary. Can you think of other factors that might support keeping Stock, rather than outsourcing payroll processing? How should other factors affect Tan’sStudent discussed whether outsourcing the payroll function increase or decrease Duck Associates’ operating income.2. Student discussed other factors that might support keeping Stock, rather than outsourcing payroll processing and how should other factors affect Tan’s decision if she wants to do what is best for Duck Associates and act ethically? Decision if she wants to do what is best for Duck Associates and act ethically?

 

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