Intergrated, Inc. is the largest manufacturer of yard equipment in the Midwest which include these four outstanding employees, among many other employees. Ingrid works in internal audit, Fred works in financial reporting, Tina works in the tax department and Angie is the Assistant Controller. Recently, they have experienced some difficulties at work.

1.) State the relevant Ethical factors (standard and conduct) that applied to each of the below scenarios with respect to the IMA Statement of Ethical Professional Practice?

2.) What would you recommend as a resolution of the ethical the ethical conflict based on IMA Statement of Ethical Professional Practice?

Scenario:1

Fred works in financial reporting and has been on a team to prepare reports for budget and forecast sales data in the upcoming year. He was informed about a new product that will bring a significant increase in sales and earnings for the company. During lunch with some friends they were asking for sound investment information because they wanted to add anything that was a sure bet to their portfolio. You unintentionally let this slip out and afterward wondered about the implications that may occur.

Scenario 2

Angie is the Assistant Controller and has been working on a special project for year end and discovered an unusual transaction that was not properly disclosed. A high write-off of spare parts had been postponed to the subsequent year so that this years earnings report falls within the expectation of the board of directors. He is not really sure about the disclosure rules so he decided to ignore it because nobody will know if they do not have access to the detailed information. After all, he only discovered it because of this special project.