Thomas Clark is an accounting software consultant at Tann and Associates Consulting. Tann is a valueadded reseller
Question:
Thomas Clark is an accounting software consultant at Tann and Associates Consulting. Tann is a value‐added reseller of accounting software for midsize companies, which normally have revenue between $50 million and $500 million. One of Clark’s responsibilities is to solicit new client companies and to meet with their management to recommend the best accounting software system for them. Mid-market accounting software typically offers several modules that the client may choose from. For example, not all clients would need an e‐business module for their accounting software. Since part of Clark’s compensation is a percentage of software sales and consulting revenue that he generates, what are the ethical conflicts he faces when soliciting new clients and recommending software and software modules? Suggest some improvements that can be made to ensure that consultants with performance based compensation are acting ethically in their communication with clients.
Step by Step Answer:
Accounting Information Systems Controls and Processes
ISBN: 978-1119329565
3rd edition
Authors: Leslie Turner, Andrea Weickgenannt, Mary Kay Copeland