KD is a newly qualified managerial accountant and has successfully secured a first job with a reputable company in the local community. The company has a clearly defined mission and equally well articulated operational policies and procedures.

After sixmonths on the job, KD becomes aware of rumors that the company is dumping potentially toxic material, and other hazardous waste in the local garbage dump - a clear violation of Provincial Legislation.

Briefly outline in clearly defined steps what KD should do. [6]

1.Define:

The Ethical Challenge:

2.Explain:

What is the accountant required to do in response to an ethical challenge:

3.Outline:

The action/s, KD should take or not take. Give reasons.