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Maria Mendez is division controller and James Datton is division manager of the Hestor Shoe Company. Mendez has line responsibility to Dalton, but she also
Maria Mendez is division controller and James Datton is division manager of the Hestor Shoe Company. Mendez has line responsibility to Dalton, but she also has staff responsibility to the company controller. Dalton is under severe pressure to achieve the budgeted division income for the year. He has asked Mendez to book $200,000 of revenues on December 31. The customers orders are firm, but the shoes are still in the production process. They will be shipped on or around January 4. Dalton says to Mendez, "The key event is getting the sales order, not shipping the shoes. You should support me, not obstruct my reaching division goals." Requirements Describe Mendez's ethical responsibilities. What should Mendez do if Dalton gives her a direct order to book the sales? Requirement 1. Describe Mendez's ethical responsibilities. (1) Honesty, (2) Integrity, (3) Credibility, and (4) Responsibility. These standards are summarized in the IMA's "Standards of Ethical Conduct for Management Accountants". (1) Competence, (2) Confidentiality, (3) Honesty, and (4) Fairness. These standards are summarized in the CMA's "Standards of Ethical Conduct for Management Accountants". (1) Competence, (2) Confidentiality, (3) Integrity, and (4) Credibility. These standards are summarized in the IMA's "Standards of Ethical Conduct for Management Accountants". (1) Honesty, (2) Fairness, (3) Integrity, and (4) Credibility. These standards are summarized in the CMA's "Standards of Ethical Conduct for Management Accountants". What should Mendez do if Dalton gives her a direct order to book the sales? Mendez should resign immediately. Mendez should refuse to follow Dalton's orders, and if Dalton persists, the incident should be reported to the corporate controller. Mendez should book the sale, otherwise she'll be in jeopardy of losing her job. Mendez should book the sale and then include a note in the financial statements describing the company's revenue recognition practices
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