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.

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Definitions:

Parallel Processing

The ability of the brain to simultaneously process incoming stimuli of differing quality.

Means-End Analysis

A problem-solving technique that involves breaking down the problem into smaller, more manageable parts and addressing each part to reach the overall goal.

Spontaneous Language Development

The natural way in which children acquire language without formal instruction.

Cerebral Cortex

The wrinkled surface area (gray matter) of the cerebrum.