Accountng Essay

521 WordsApr 27, 20153 Pages
Du-Vonte’ Zimmerman September 30, 2014 ACC- 201 Dr. Gillen Ethical Essay #1 Rusty Colonial is put in a very perplexed situation. He is left with a decision to either be ethically and morally right to the board, or to deceive and withhold information that can increase costs of the company. The decision he could make can be in direct violation of the IMA Statement of Ethical Professional Practice. Rusty could fail to comply with competence, confidentiality, integrity, and credibility ethical practices. The competence ethical practice can be violated because Rusty and the plant manager won’t be able to perform duties in accordance with relevant laws, or communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity. The plant manager told Rusty to not tell the board about the problem and how much it would cost to fix the problem of the peeling of logos off the products. This is a result of a failure to communicate the lack of successful performance of an activity. Rusty will not be able to continue his practice of integrity if he does not tell the board about a solution to the problem and the financial costs to do so because there would be a substantial increase in production material costs and it is labor intensive. Not informing the board with the proper cost benefit analysis also does not fit the guidelines of confidentiality practice. With this decision they keep information confidential except when disclosure is authorized or legally required, doesn’t inform all relevant parties regarding appropriate use of confidential information, and does not properly monitor subordinates' activities to ensure compliance. The lack of effective communication of information to the board discredits Rusty and the manager’s credibility because the board would have a lack of knowledge or

More about Accountng Essay

Open Document