2. not within her rights as manager. as a manager she is supposed to be an agent acting in the best interests of the owner of the company. if the only reason she is suggesting accounting changes is to increase her compensation, then she is putting her own interests ahead of the company's/owner's interests. Especially since adjusting the company's net income could affect company decision making. if she has a good reason to lower doubtful account estimates (for example if the controller historically overestimates doubtful accounts, and she believes that this under-represents the company's net income) then she has not commited an ethics violation, but since the prompt clearly indicates that she makes her recommendations based on a desire to increase her own compensation, so she is no longer acting as a faithful agent for the owner, then yes, her actions constitute and eithics violation. .