Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ethics and casual conversations: Jane is an accountant at Merelix, a large international firm where she works on potential acquisitions. When Merelix is preparing to

Ethics and casual conversations:

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

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

Over the past two years, Jane has talked with Tom about what shes doing at work. She does not go into great detail, but does occasionally mention company names. Jane has given her phone passcode to Tom so he can answer calls for her or look things up for her when shes the one driving. Tom 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 Jane, Tom has been sharing the information he has gotten from her with his stockbroker friend, Allen. Tom will call Allen to give him a heads up that Janes 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 Tom.

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

Requirements:

Using the IMA Statement of Ethical Professional Practice (refer to Exhibit 1-7 pg.13 of the textbook) as an ethical framework, answer the following questions:

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

What are Janes responsibilities as a management accountant?

Has Jane violated any part of the IMA Statement of Ethical Professional Practice? Support your answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Study On The Auditing Theory Of Socialism With Chinese Characteristics

Authors: Jiayi Liu

1st Edition

1119107814, 978-1119107811

More Books

Students also viewed these Accounting questions

Question

List four responses to managing risk.

Answered: 1 week ago

Question

History on Russia Privitization

Answered: 1 week ago