Task 1d: CLO1

Question

Asma is a junior management accountant at Flower Cloth Ltd. Asma is tasked with compiling a cost-benefit analysis report on whether the company should purchase an expensive new machine from Radi Ltd, where her brother has been promoted to sales manager. Unfortunately, Asma kept the news of her brothers new job a secret from the rest of the Flower Cloth community. As a result, Asma overstates the qualitative benefits of the new machine while understating its costs to assist her brother in making his first sales as the companys new sales manager.

Required: Discuss why and how Asma has deviated from the standards of ethical conduct.