In this case, Anika, an accounting supervisor at a private organization, discovers that freight has been excluded from the calculation of costs of goods sold, causing net income to be overstated. The expected financial results for the year have already been reported to the company’s board of directors. Anika’s boss does not want to admit a mistake was made and asks her to find ways to make adjustments that will offset the correcting entry for the freight issue. Although she could easily come up with a justification for the changes that would satisfy the auditors, she knew it was not the right thing to do. Instead, she needed to come up with a way to convince her boss to make the correction and not make other adjustments to offset it.