Question 1
a. Management Accountants have an obligation to follow the highest standards of ethical responsibility and maintain good professional image. They also should not condone the commission of unethical acts by others within their organizations.
It is obvious that falsifying travelling reimbursement claim by Mustapha was unethical conduct and I, as a professional that have been entrusted by the company’s shareholders to safeguard the company’s interests and well-being, should therefore take appropriate actions as provided by the profession’s guiding body to resolve the situation.
The overall principles identified in the IMA Statement of Ethical Professional Practice that should guide the professional conduct of a Management Accountant …show more content…
Competence
• Perform professional duties in accordance with relevant laws, regulations and technical standards.
• Provide decision support information and recommendations that are accurate, clear, concise, and timely. If I were to accept Mustapha’s falsified travelling claim as something that is a norm and expected from all the staff in the organization, I would have deemed failed to perform my professional duties in accordance to IMA standards of ethical responsibilities. Despite it being so common and practiced by all (in Mustapha’s own account), what is wrong is still wrong and failure to take action on my side would deem me as incompetence in performing my professional conduct as a Management Accountant. The falsified claim would give an inaccurate information on the company’s costs of sales for the purpose of determining the pricing for its products and services. Thus, the failure to conduct my responsibilities competently would therefore, distort the company’s product costing and subsequently inflate the selling price charged for a lower quality goods and services. ii. Confidentiality – Not Applicable
iii. …show more content…
Obviously I have an ethical conflict of interest because Mustapha is my friend. I would have the possibility of losing a friend, if I were to report his wrong-doings, and my integrity, if I didn’t. Mustapha has also argued that ‘all the other staff falsify their claims’, which could mean that my superiors including the CEO would have also done the same thing. The conflict of interest here would have impacted on my personal growth (and KPIs) should my superiors found out about my ‘whistle-blowing’ action and decided to retaliate. Also, if I were to proceed with Mustapha’s falsified claim, my behavior would be deemed as supporting an activity that might discredit my integrity as a Management Accountant who has been entrusted by the profession’s governing body to refrain from engaging in a conduct that would prejudice my carrying out of the professional duties ethically. It is also my responsibility to advise all parties of any potential conflicts, more so if the wrong doer is my own friend who should be able to show empathy towards my professional duties and lend the support that I desperately need at times of
a. Management Accountants have an obligation to follow the highest standards of ethical responsibility and maintain good professional image. They also should not condone the commission of unethical acts by others within their organizations.
It is obvious that falsifying travelling reimbursement claim by Mustapha was unethical conduct and I, as a professional that have been entrusted by the company’s shareholders to safeguard the company’s interests and well-being, should therefore take appropriate actions as provided by the profession’s guiding body to resolve the situation.
The overall principles identified in the IMA Statement of Ethical Professional Practice that should guide the professional conduct of a Management Accountant …show more content…
Competence
• Perform professional duties in accordance with relevant laws, regulations and technical standards.
• Provide decision support information and recommendations that are accurate, clear, concise, and timely. If I were to accept Mustapha’s falsified travelling claim as something that is a norm and expected from all the staff in the organization, I would have deemed failed to perform my professional duties in accordance to IMA standards of ethical responsibilities. Despite it being so common and practiced by all (in Mustapha’s own account), what is wrong is still wrong and failure to take action on my side would deem me as incompetence in performing my professional conduct as a Management Accountant. The falsified claim would give an inaccurate information on the company’s costs of sales for the purpose of determining the pricing for its products and services. Thus, the failure to conduct my responsibilities competently would therefore, distort the company’s product costing and subsequently inflate the selling price charged for a lower quality goods and services. ii. Confidentiality – Not Applicable
iii. …show more content…
Obviously I have an ethical conflict of interest because Mustapha is my friend. I would have the possibility of losing a friend, if I were to report his wrong-doings, and my integrity, if I didn’t. Mustapha has also argued that ‘all the other staff falsify their claims’, which could mean that my superiors including the CEO would have also done the same thing. The conflict of interest here would have impacted on my personal growth (and KPIs) should my superiors found out about my ‘whistle-blowing’ action and decided to retaliate. Also, if I were to proceed with Mustapha’s falsified claim, my behavior would be deemed as supporting an activity that might discredit my integrity as a Management Accountant who has been entrusted by the profession’s governing body to refrain from engaging in a conduct that would prejudice my carrying out of the professional duties ethically. It is also my responsibility to advise all parties of any potential conflicts, more so if the wrong doer is my own friend who should be able to show empathy towards my professional duties and lend the support that I desperately need at times of