Cost Accounting and Decision Making Essay - 822 Words

ACC2CAD COST ACCOUNTING AND DECISION MAKING SEMESTER 1, 2011 MINI CASE STUDY 1 DISCLOSURE OF CONFIDENTIAL INFORMATION; ETHICS Page 1 Recommendation Page.3 Executive summary Page.4 Introduction Page.5 Analysis Page.6 Recommendations and conclusion Page.7 Appendix 1 – Code of Ethics for Professional Accountants Page.8 References Page.9 Page 2 Recommendation Erin should notify Smart Worx of the postponement as it is consistent with ethical principles of integrity and professional competence. As Erin is complying with these codes of ethics, she has nothing to lose or suffer as she followed the guidelines of the code and therefore cannot be†¦show more content†¦She must not take action which would conflict with these principles. If Rob Rodent postpones the new order, Erin should notify Smart Worx’s managers due to fact she has to comply with the code of ethics for professional accountants, If Erin does not notify the managers it would conflict with principle of integrity and professional competence and due care. However she could remain confidential and not disclose information about Rodent’s postponement of the new order however Smart Worx’s managers would find out eventually. Erin could argue that she had complied with the principle of confidentiality and did not disclose important information of Rodent. The accounting professional and ethical standards also include safeguards against threats and intimidation. The situation between Erin and Jim could be resolved via formal dispute resolution process, obtaining advice from organisation or seeking legal advice. Page 6 Recommendation and conclusion It is recommended that Erin should comply with the principle of integrity and professional competence and notify her company of the potential jeopardy of their new product. Page 7 Appendix 1- Code of Ethics for Professional accountants Section 110 Integrity 110.1 - The principle of integrity imposes an obligation on all Members to be straightforward and honest inShow MoreRelatedEssay about Role of Managerial Accounting1112 Words   |  5 Pagesbusiness costs down which involve internal and external actions. For internal control, the accountant has a responsibility to monitor finances of a company. Other responsibilities include keeping track of liabilities, duties and taxes. Furthermore, analyses of measurement data on creditors or stockholders are also provided by an accountant. 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