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SaraisajuniormanagementaccountantatBig Discount Store Ltd.Saraisgiventhetaskofcompilingacost-benefitanalysisreportonwhetherthecompanyshouldpurchaseanexpensivenewmachinefromBetaLtd,whereherboyfriendisthenewsalesmanager.SaradidnottellanyoneinBigDiscount Store Ltdaboutherboyfriend'snewjob. Inpreparingherreport,Saraoverstatesthequalitativebenefitsandunderstatesthecostsassociatedwiththisnewmachine,inordertohelpherboyfriendmakehisfirstsaleasthenewsalesmanager. Discuss why and howSarahas deviated from the IFAC's code of ethics.
SaraisajuniormanagementaccountantatBig Discount Store Ltd.Saraisgiventhetaskofcompilingacost-benefitanalysisreportonwhetherthecompanyshouldpurchaseanexpensivenewmachinefromBetaLtd,whereherboyfriendisthenewsalesmanager.SaradidnottellanyoneinBigDiscount Store Ltdaboutherboyfriend'snewjob.
Inpreparingherreport,Saraoverstatesthequalitativebenefitsandunderstatesthecostsassociatedwiththisnewmachine,inordertohelpherboyfriendmakehisfirstsaleasthenewsalesmanager.
Discuss why and howSarahas deviated from the IFAC's code of ethics.
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