When doing the master budget for the hotel I work for the manager asked me to add 15% slack to the labor and inventory. Is it illegal to add slack to a master budget?
Answer
Is a budget a legal document that's got to be executed under oath? On the other hand does what you're being asked to do conform with recognized accounting practices and rules? It may be a professional issue to falsify a budget if that is used to obtain money on a loan.
Answer
It would depend on the purpose of the document you are preparing. If it is meant to defraud someone, there could be a problem. If not, it is just an internal document used for planning.
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