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Uber Accounting Error

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User Generated
Subject
Accounting
School
Strayer University
Type
Homework
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Discussion Question Week Two: Uber Accounting Error
The accounting error experienced in Uber where deductions for commission were based
on gross earnings and not on net earnings is a case of gross incompetence. Therefore, hiring more
competent accounting managers would help to address the problems that led to the $50 million
error. Such an accounting task, which requires accounting officers and managers to review
financial reports before adopting them, is not unique to Uber and therefore, Uber’s error was due
to negligence and incompetence. Besides, if the accounting officers can fail to notice such a glaring
error, there is high possibility they are incompetent in other accounting areas and therefore, training
them on one aspect maybe ineffective. The best way would be to hire more competent accounting
officers. The accounting managers should take responsibility for the error since like in any other
entity, they are responsible for any errors that arise. It was their duty to ensure such errors do not
arise. Hiring more competent accounting managers will also send a signal to other departments in
the company that incompetence will not be tolerated. It is also a more cost-effective measure of
handling the problem, compared to training.

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Discussion Question Week Two: Uber Accounting Error The accounting error experienced in Uber where deductions for commission were based on gross earnings and not on net earnings is a case of gross incompetence. Therefore, hiring more competent accounting managers would help to address the problems t ...
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Anonymous
Excellent! Definitely coming back for more study materials.

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