Perry Became a CPA in 2002

question 10

Essay

Perry became a CPA in 2002.After working as a staff auditor and accountant for other companies,she was hired as an auditor by Big Firm in 2003.When she was hired,there were four male auditors in her area who had been with the company for several years and were classified as senior auditors.In 2004,Perry complained that she was receiving the same salary as a new male senior auditor,Bradshaw,even though she was doing the same work.When Bradshaw was brought in,Big Firm was in the process of divestiture and its policy was to fill positions with lateral transfers from other areas because of a promotion and hiring freeze.In 2005,Perry filed a complaint with the EEOC claiming that she was not being paid equally for equal work.Did Big Firm violate the Equal Pay Act by paying Perry less than the male accountants?

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, presented in a structured manner.

Interrelationships

The way in which each of two or more things is related to the other or others.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period of time.

Telephone Expense

Costs incurred by a business for the use of telephone services.