Henry Maddox was recently promoted to Controller of Research and Development $($R&D$)$ for Pharmex, a Fortune $500$ pharmaceutical company that manufactures prescription drugs and nutritional supplements.

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Maddox came up with the following ideas for making the third$-$quarter budgeted targets:

$($C$)($Click the icon to view the ideas:$)$

Read the requirements.

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$q,$

A$.$ Occasionally communicate with business associates to resolve apparent conflicts of interest.

B$.$ Do not disclose delays or deficiencies in information, timeliness, processing, or internal controls due to organization policy.

C$.$ Disclose all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations.

D$.$ Perform professional duties in accordance with relevant laws, regulations, and technical standards.

E$.$ Communicate information fairly and objectively.

F$.$ Disclose confidential information when it is requested by anyone.

G$.$ Refrain from engaging in any conduct that would prejudice carrying out duties ethically.

Determine whether each of the proposed ideas is in clear violation $($Violation$),$ is clearly in compliance with $($No Violation$),$ or may be in violation with $($Potential Violation$)$ the "Standards of Ethical Behavior for Practitioners of Management Accounting and Financial Management".

Proposed Idea

Violation?

Cut planned bonuses to the Amiven R&D team that would be paid in the third quarter, knowing that doing so may result in lower productivity and increased

a$.$ turnover of highly skilled staff.