Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the Integrated Ethical Decision-Making Process discussed in the chapter to help you assess the following: 1. Identify the ethical and professional issues of concern

 

 

 

Use the Integrated Ethical Decision-Making Process discussed in the chapter to help you assess the following:

  1. 1. Identify the ethical and professional issues of concern to Beverly Wald as the chief internal auditor and a CPA. 
  2. 2. Who are the stakeholders in this case and what are their interests?
  3. 3. Identify alternative courses of action for Wald, Plotkin, and Sugofsky to present in their meeting with Milton. How might these alternatives affect the stakeholder interests? 
  4. 4. If you were in Milton's place, which of the alternatives would you choose and why?

Milton Manufacturing Company produces a variety of textiles for distribution to wholesale manufacturers of clothing products. The company's primary operations are located in Long Island City, New York, with branch factories and warehouses in several surrounding cities. Milton Manufacturing is a closely held company, and Irv Milton is the president. He started the business in 2005, and it grew in revenue from $500,000 to $5 million in 10 years. However, the revenues declined to $4.5 million in 2015. Net cash flows from all activities also were declining. The company was concerned because it planned to borrow $20 million from the credit markets in the fourth quarter of 2016. Irv Milton met with Ann Plotkin, the chief accounting officer (CAO), on January 15, 2016, to discuss a proposal by Plotkin to control cash outflows. He was not overly concerned about the recent decline in net cash flows from operating activities because these amounts were ex pected to increase in 2016 as a result of projected higher levels of revenue and cash collections. However, that was not Plotkin's view. Plotkin knew that if overall negative capital expenditures continued to increase at the rate of 40 percent per year, Milton Manufacturing probably would not be able to borrow the $20 million. Therefore, she suggested establishing a new policy to be instituted on a temporary basis. Each plant's capital expenditures for 2016 for

Step by Step Solution

3.34 Rating (157 Votes )

There are 3 Steps involved in it

Step: 1

1 Identify the ethical and professional issues of concern to Beverly Wald as the chief internal auditor and a CPA Beverly Wald should be concerned with several ethical and professional issues as the c... 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

Step: 3

blur-text-image

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

Ethical Obligations and Decision Making in Accounting Text and Cases

Authors: Steven Mintz, Roselyn Morris

3rd edition

007786221X, 978-0077862213

More Books

Students also viewed these Business Communication questions

Question

What are models and why are they important?

Answered: 1 week ago