The Violation of Ethical Professional Practice: A Case Study

School: Post University - Course: ACCT 211H - Subject: Accounting

Unit 7 Assignment: Chapter 12 Case Study ACCT 211 Managerial Accounting Post University Prof. Ms. Higgins Paul Licon 2/21/2023

1.Yes, The proposal was changed by Rachel Arnett in violation of the IMA's Statement of Ethical Professional Practice. She ignored her fair forecasts and estimates after Williams Earle questioned her. She made use of highly improbable numbers. She violated the rules to "Communicate knowledge accurately and objectively and "Disclose all pertinent information that could have an impact on an intended user's comprehension of the reports, analyses, or recommendations." By changing her reasoning, she violated the Integrity standard as well. She took a step that would make it more difficult for her to conduct herself legally and morally at work. She also fell short of the competency standard, which states, "Provide recommendations and information for decision support that are reliable, straightforward, precise, and prompt. "Honesty, fairness, objectivity, and accountability are the guiding moral values of IMA. Rachel Arnett has changed the plan in violation of the Honesty Code and has resubmitted it for review by the president of Fore and the Board of directors' finance committee. First and foremost, Rachel's alteration to the original plan directly conflicts with the International Medical Association's Statement of Ethical Professional Conduct. The stress of delivering a positive net current value has caused her to reduce her calculations to values with a very slim possibility of occurring (NPV). The idea of "presenting information honestly and accurately" is violated. Another omission was "publicly announcing all critical information that could influence the participant's assessment and perception of reports. "She had compromised her integrity by changing the analysis and performing her responsibilities in a way that jeopardized her ability to do so ethically. All professionals must "provide recommendation information and recommendations that are reliable, straightforward, brief, and rapid," according to the general principle and the benchmark of competence.

2.Yes, Earle similarly breaches the International Medical Association's code of ethics, as did Rachel. His inability to "offer recommendation data and suggestions that are precise, straightforward, brief, and rapid" violates the competency requirement. He has not met this criterion, unfortunately. Additionally, he has violated the criteria of trustworthiness and integrity by operating in his self-interest and failing to inform his audience openly, somewhat, and objectively. Earle has overstepped in all three areas: credibility, integrity, and competence. Errors could not have happened because William Earle would have clarified how to alter the plan or where the error is. Mr. William Earle has broken the IMA's Statement of Ethical Professional Practice responsibility rule. The following internal controls could be put in place by Fore Corporation to prevent immoral conduct: The Controller and the Board of Directors must approve all formal requests for capital expenses. Before any proposals for capital expenditures are endorsed, the executive expected to operate leadership, including the Controller, must review them. Specialists assign a non-accounting/finance manager to synchronize demands for fixed assets or divide the work involved in reviewing and approving requests for capital expenditures. Without workers, the audit committee team must review all requests for capital expenditures or engage outside auditors.