Question

In: Accounting

Ethical case: You are an entry level accountant at city hall, you work for accounting department...

Ethical case:

You are an entry level accountant at city hall, you work for accounting department loaned outs to the department responsible for building and maintaining roads. While the managers develop their annual budget, the director of the department is in the middle of a nasty divorce, he asks you to work on Saturday to finish up details of the budget, when you arrive he asks you to work on schedule his personal financial information for upcoming divorce court case when you finish the statement, he tells you to record hours as overtime and bill the to the city.

please answer below questions with more explanations

1- what is the ethical issue here?

2-what are the alternatives?

3-if you do as the director asks and your boss finds out, what might happen?

4-what risks are involved? What information relevant to your discussion?

Solutions

Expert Solution

1- What is the ethical issue here

Ans

The ethical issue is for the entry level accountant is work in office hours to do personal work of director of department and charge the organization for the work done on Saturday as overtime.

The ethical issue with accountant is as follows

  • To do personal work of director in office timings of organization for which he is paid salary to do organization work only
  • To charge the organization as overtime for not doing organization work

2-what are the alternatives?

Ans

As per the standards of ethical conduct for IMA members. This issue of integrity where the member in this case accountant should communicate professional limitations or other constraints for not doing this work

One of the other alternatives is communicate and discuss this issue with the immediate boss and ask for his response and guidance

3-if you do as the director asks and your boss finds out, what might happen?

Ans

If the boss is not informed and find outs that accountant has followed the orders of director .this could lead to questioning of accountants

  • Integrity
  • Reputation

Which will also lead to lowering of self esteem in accountants own self

4-what risks are involved? What information relevant to your discussion?

Ans

The risk of not following the director’s orders can be as follows

  • Bad performance appraisal report by director
  • No pay rise or demotion
  • Termination from the job
  • Harrasment in the work place

The information on standards of ethical conduct for IMA members is a guideline for discussing with the immediate superior of not be able to perform the duties given by director. If there is no resolution than the last option is resign from job giving the reasons


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