Sancha is an accountant at Merelix, a large international firm where she works on potential acquisitions. When Merelix is preparing to acquire a company, Sancha is involved in filing the necessary paperwork with the Securities and Exchange Commission (SEC).

Sancha has been dating Jaya for two years; they are now discussing marriage. Jaya works as a salesperson for a golf equipment distributor.

Over the past two years, Sancha has talked with Jaya about what she’s doing at work.

She does not go into great detail, but does occasionally mention company names. Sancha has given her phone passcode to Jaya so he can answer calls for her or look things up for her when she’s the one driving. Jaya has read some of her emails by using the phone passcode. He has also eavesdropped on a few phone conversations she has had when a colleague calls her from work with a question.

Unbeknownst to Sancha, Jaya has been sharing the information he has gotten from her with his stockbroker friend, Allen. Jaya will call Allen to give him a “heads up” that Sancha’s company is going to be acquiring another company soon. Allen will then place an order to buy the stock of the company and will later split the profits with Jaya.

Sancha has not shared any information intentionally, nor has she directly profited from it.

Requirements:-

Using the IMA Statement of Ethical Professional Practice as an ethical framework, answer the following questions:

1. What is (are) the ethical issue(s) in this situation?

2. What are Sancha’s responsibilities as a management accountant?

3. Has Sancha violated any part of the IMA Statement of Ethical Professional Practice?

Support your answer.