Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 11

Super Security Co. offers a range of security services for athletes and entertainers. Each type of service is considered within a separate department. Marc Pincus, the overall manager, is compensated partly on the basis of departmental performance by staying within the quarterly cost budget. He often revises operations to make sure departments stay within budget. Says Pincus, "I will not go over budget even if it means slightly compromising the level and quality of service. These are minor compromises that don't significantly affect my clients, at least in the short term."
Required
1. Is there an ethical concern in this situation If so, which parties are affected Explain.
2. Can Marc Pincus take action to eliminate or reduce any ethical concerns Explain.
3. What is Super Security's ethical responsibility in offering professional services