You are the accountant for New World Pharmaceuticals. Your duties include tracking research and development spending in the new product development division. Over the course of the past six months, you noticed that a great deal of funds have been spent on a particular project for a new drug. You hear "through the grapevine" that the company is about to patent the drug and expects it to be a major advance in antibiotics. You believe that this new drug will greatly improve company performance and will cause the company's stock to increase in value. You decide to purchase shares of New World in order to benefit from this expected increase.

Required: What are your ethical responsibilities, if any, with respect to the information you have learned through your duties as an accountant for New World Pharmaceuticals? What are the implications of your planned purchase of New World shares?

Criteria RESPONSIBILITIES AS INTERNAL ACCOUNTANT Name something that is different about being an internal accountant versus an external accountant.....e. CPA. ETHICAL VERSUS ILLEGAL Give example of how this could become not only unethical, but actually breaking the law and illegal. WHAT COULD GO WRONG? Give an example of something that might go wrong and cause you to not profit from this planned purchase of stock. Criteria RESPONSIBILITIES AS INTERNAL ACCOUNTANT Name something that is different about being an internal accountant versus an external accountant.....e. CPA. ETHICAL VERSUS ILLEGAL Give example of how this could become not only unethical, but actually breaking the law and illegal. WHAT COULD GO WRONG? Give an example of something that might go wrong and cause you to not profit from this planned purchase of stock