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In: Accounting

Mr. Razak is a successful entrepreneur who owns a construction firm. He intends to apply a...

Mr. Razak is a successful entrepreneur who owns a construction firm. He intends to apply a government tender for constructing a new city council’s office. Recently, he went to a bank and coincidently met his ex-school mate, Mr. Amirul, who is a senior accountant at the city council office. Last Monday, they went out for a breakfast and during the meeting, Mr. Razak obtained some confidential information about the government tender from Mr. Amirul. The information is very useful for Mr. Razak in submitting his application for the government tender. REQUIRED: (a) Discuss TWO (2) ethical behaviors that might have been violated by Mr. Amirul as a senior accountant at a city council. (b) Suggest TWO (2) precautions or safety measures that Mr. Amirul should take in order to avoid such unethical behaviors discussed in (a). (c) Provide TWO (2) examples of managerial activities or decision makings that would be taken by Mr. Amirul as a senior accountant at a city council.

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Expert Solution

Q) Discuss TWO (2) ethical behaviors that might have been violated by Mr. Amirul as a senior accountant at a city council.

1)   First important issue that Mr. Amirul has violated the Code of Conduct of his profession and Secret of his work. He has share vital information about the tender which will give favor to his friend Mr. Razak to get his tender.
2)   He has used his senior position in city council office in wrong way. He has shared his classified information which has term as unethical behavior. If he is caught or any inquiry has been set up, he is bound to punish or suspended from his job.

Q) Precautions or safety measures that Mr. Amirul should take in order to avoid such unethical behaviors discussed in

1)   The first important things that Mr. Amirul should keep his professional and Personal Life separate. Which will not help him in professional but also it will not help him to fall in trouble in future.
2)   Mr. Amirul should not disclose tender information at any cost, even if he is offered monetary term or friendship term. He should take measure such as keeping official documents in office locker and no discussion at public place.
3)   As he already mention some details to his Friend Mr. Razak to save his job, he should inform his higher authority about this situation, so that higher authority can change the tender details. At least higher authority granted him less punishment rather than higher authority hearing from other means.
4)   As Conflict of Interest is there, he should be away from tender details or member of committee dealing with tender matter. So that Conflict of Interest doesn’t arise, no one can blame that Mr. Amirul given undue advantages to his close people.

Q) Examples of managerial activities or decision makings that would be taken by Mr. Amirul as a senior accountant at a city council

As Mr. Amirul is holding important position as a Senior Accountant at City Council. His any decision will be taken as vital for city council development.

1)   As a senior accountant ,he should take decision proper books of accountant are maintained and proper financial transaction are recorded in what is defined in rules Book. There should be clear secrecy and no information should be passing out to the public until and unless higher authority gives permission to pass out to the public.
2)   As a city council deals with the public, there are lots of public welfare work are continued and so as a senior accountant, every books of accountant need to cross check once in a week, so that any wrong doing or any mistakes can be rectified soon. All books of accounts are needed to keep in secured locker if it’s held in physical mode and if its online and it should be secured by Password Protected.



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