1. An independent review of Toshiba found that the company had inflated its profits.

Assume you were one of the managerial accountants involved in this overstatement of profits, list and explain two standards from the IMA Statement of Professional Practice which would have been violated. (4 points)

A.

B.

2. The Statement of Professional Practice also gives three steps to resolve an ethical conflict. Tashibas chief executive, Hisao Tanaka says that he did not encourage improper accounting, but that his staff made that assumption. Which of the three steps listed in the standard would have resolved this misunderstanding? How? (3 points)

3. List three entities, other than the accountants and the CEO, who are affected by the accounting irregularities and explain how they are affected. (3 points)

A.

B.

C.