Jenstar had secured a contract from the us government to


Jenstar had secured a contract from the U.S. government to manufacture a missile retrieval system. The contract required that Jenstar provide a qualification report showing that the system was tested and met all the government specifications. In testing the system, Jenstar encountered problems. The system did not and could not pass the qualification tests. In a management meeting comprised of the chief engineering officer, the chief accounting officer, the chief financial officer, and the lead engineer, it was decided that the qualification report would be falsified. The qualification report was prepared and submitted to the government. Before the government accepted the report, the chief accounting officer blew the whistle and informed the government about the system’s deficiencies. Which of the following is correct?

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Financial Management: Jenstar had secured a contract from the us government to
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