Accounting Management Decisions

PLEASE COMPLETE THE FOLLOWING WITH GREAT DETAIL AND EXPLANATION

THANK YOU

This ethics exercise will address ethical issues related to management accountants. Read the following ethics case, review the IMA's Statement of Ethical Professional Practice, and answer four discussion questions. Ethics Case You have just been appointed as a management accountant this month, and you are currently examining the expense reports of your staff, who counted inventory at warehouses in New Jersey. You discover that one of your staff, Josh, has claimed but not included hotel receipts for $1,500 of accommodation expenses. Other staff, who also claimed $1,500, did attach hotel receipts in their expense reports. When asked about the receipts, Josh admits that he stayed with a friend in New Jersey, not in the hotel, but he believes that he deserves the money he saved. Josh also mentioned that he received the accommodation expense reimbursements from the company in the past few years without submitting the hotel receipts. You checked the expense reports from previous years and noticed that your supervisor was the management accountant who signed and approved the expense reports in the past few years. Discussion Questions 1. Outline the main ethical issues. 2. Identify two stakeholders, their interests, and potential conflicts of interest. a) List two stakeholders and their interests. b) Describe the two stakeholders' potential conflicts of interest with each other based on the scenario (NOTE: make sure to discuss conflicts of interest between the two stakeholders). 3. State two actions you could take given the situation, and provide one advantage and one disadvantage of each option. 4. State (a) which option you would take, and (b) why would you take this action rather than the other (NOTE: make sure to discuss how this action would impact stakeholders)