research the accounting code of conduct requirements on the internet following the institute of management accountants
Introduction: All managers need to be aware of how to address ethical dilemmas that they will encounter in their professional lives.
The following course outcome is assessed in this Assignment:
GEL-7.02: Apply ethical reasoning to ethical issues within the field of study.
Read the scenario and then follow these steps to complete Assignment 2.
First: Research the Accounting Code of Conduct requirements on the internet following the Institute of Management Accountants (IMA) guidelines. Make sure to cite at least one source from those provided and reference them (in your separate reference page).
Second: Note how IMA code of conduct requirements of (1) competence, (2) confidentiality, (3) integrity, and (4) credibility are applicable to this scenario.
Third: Then review the Ethical Approaches tutorial located in the â€œethical approachesâ€ presentation provided.
Fourth: Address the following checklist questions in a 2â€“3 page APA formatted original essay with an additional title and reference page to the Dropbox.
Read the textbook scenario (Ethics Case, p. 18-48) and address the checklist questions located below:
RenÃ© Kelly, president of RL Industries, wishes to issue a press release to bolster his companyâ€™s image and maybe even its stock price, which has been gradually falling. As controller, you have been asked to provide a list of 20 financial ratios along with some other operating statistics relative to RL Industriesâ€™ first quarter financials and operations.
Two days after you provide the ratios and data requested, Erin Lourdes, the public relations director of RL, asks you to prove the accuracy of the financial and operating data contained in the press release written by the president and edited by Erin. In the news release, the president highlights the sales increase of 25% over last yearâ€™s first quarter and the positive change in the current ratio from 1.5:1 last year to 3:1 this year. She also emphasizes that production was up 50% over the prior yearâ€™s first quarter.
You note that the press release contains only positive or improved ratios and none of the negative or deteriorated ratios. For instance, no mention is made that the debt to assets ratio has increased from 35% to 55%, that inventories are up 89%, and that although the current ratio improved, the accounts receivable turnover fell from 12 to 9. Nor is there any mention that the reported profit for the quarter would have been a loss had not the estimated lives of RL plant and machinery been increased by 30%. Erin emphasized, â€œThe press wants this release by early this afternoonâ€ (Weygandt, et al. 2018).
(1) Who are the stakeholders in this situation?
(2) Apply two or more accounting codes of conduct to answer the following questions:
a. Is there anything unethical in President Kelleyâ€™s actions?
b. Should you as controller remain silent? Does Erin have any responsibility?
(3) Then compare your response regarding the accounting code of conduct questions above, to the ethical approaches in the tutorial.
a. Which accounting code of conduct responses to questions “a” and “b” above would be supported by two of the ethical approaches in the tutorial? Explain.
Visual Recap: A presentation of ethical approaches
Submit Unit 8 Assignment 2 in a Word document to the unit Dropbox.
Access the grading rubric