Applying Professional Responsibility:

Determine any ethical considerations in the following scenarios. Ethical considerations can be seen at the end of the page:

A. Ethan NG is the managerial accountant for a big-sized public company in Canada. An industry stock analyst has invited Ethan to spend two weeks in Barbados at no cost to her. In return for this favor, Ethan would send him any financial press release before it becomes public. If Ethan takes the offer, in what ways did he breach the ethical considerations mentioned below? What would you do, if you were Ethan?

B. The company that you work for is hot in the market and is highly esteemed by investors. The shares are overpriced in your opinion. As the managerial accountant, you know that the company's earnings cannot sustain investor expectations, and you believe that the share price will fall dramatically within the next year. Your parents are thinking of investing a large part of their retirement income in the company. Do you tell them not to, on the basis of what you know?

Every Canadian Chartered Professional Accountant (CPA) is expected to abide by the guidelines of the code of conduct established by the provincial CPA organizations. These codes of conduct are developed on the basis of the following five fundamental principles: 1. Professional Behaviour - Chartered Professional Accountants conduct themselves at all times in a manner which will maintain the good reputation of the profession and serve the public interest. 2. Integrity and Due Care - Chartered Professional Accountants perform professional services with integrity and due care. 3. Objectivity - Chartered Professional Accountants do not allow their professional or business judgment to be compromised by bias, conflict of interest, or the undue influence of others. 4. Professional Competence - Chartered Professional Accountants maintain their professional skills and competence by keeping informed of, and complying with, developments in their area of professional service. 5. Confidentiality - Chartered Professional Accountants protect confidential information acquired as a result of professional, employment, and business relationships and do not disclose it without proper