After completing a Bachelor of Marine Engineering degree from Deakin University, Oliver and William decided to start their own business in 2020. Advanced Marine Tech (AMT) manufactures electric outboard motors (Four Stroke) for many boats including kayaks, dinghies, canoes, inflatables, and sailboats. AMT has its manufacturing plant in Seaford, Victoria. Currently, the business uses the local bookkeeper to lodge BAS and prepare reports for tax purposes. With the increasing demand and competition, business is planning to expand their operation and set strategic planning for the business. Oliver suggested that they should hire an external business development consultant. However, William argued that better hire an accountant with business management knowledge who can continuously support us in planning and controlling.

Question 1.

William is a good friend of yours, and he knows that you are currently studying BCom (Accounting) at Deakin University. William approaches you and asks for some information about the role of management accountant. He wants to convince Oliver to hire a management accountant for their business.

Required:

short report, highlighting the importance of hiring a management accountant for their business and how a management accountant can support in setting the strategic plan and support managers in their tasks of enhancing broader stakeholder value in the short-term, medium-term, and long-term (Chapter 1, 10 marks)

Question 2.

William used your report information to convince Oliver that they should hire a management accountant finally, Oliver agreed, and Oliver suggested William arrange the interviews and be the head of the interview panel and select a good candidate. William and you are really good friends and William thought this is a good opportunity to hire his friend as a management accountant, but he did not disclose any of this information to Oliver. Finally, you got a job in AMT as a management accountant while you are studying for your BCom degree at Deakin University.

Required:

State one of the ethical standards as provided by the CIMA Code of Ethics1, which is being jeopardized by William, by hiring you. Justify why this standard is being jeopardized. Please elaborate on how William could hire you without jeopardizing any ethical standard (Chapter 1, 10 marks)