Suppose a Management Accountant Becomes Aware of a Confidential but Illegal

question 112

Essay

Suppose a management accountant becomes aware of a confidential but illegal act that has occurred within her company.The management accountant must consider what she is ethically bound to do about this situation.Three alternative responses to this situation are given below.State whether you agree or disagree with each,and briefly detail your reasons.
a.The accountant must remain loyal to the company at all times and should report the occurrence only to appropriate officials within the company.
b.The accountant is bound to inform officials only if she stands to personally gain (make money)from knowledge of the illegal act.
c.The accountant must exercise personal judgment;a clear-cut answer does not exist given the limited information provided.

---

Definitions:

United States

is a federal republic consisting of 50 states, a federal district, five major territories, and various possessions, primarily located in North America.

Developing Countries

are nations with a lower level of industrialization, lower living standards, and lower Human Development Index ratings compared to developed countries.

Major Causes

The primary or most significant reasons behind a phenomenon, event, or condition, which are integral to its understanding and resolution.

Nightmares

Disturbing dreams that often wake you up from sleep, typically associated with negative feelings such as anxiety or fear.