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Running head: FORUM1: INTEGRATIVE CASE 1-43


Forum1: Integrative Case 1-43 Audrey Dodson Liberty University January 15, 2014

his conduct and actions could also be . their employer. 2012) and determines and individual’s conduct and decision making (Kubasek. the course of action an individual decides to take should be carefully considered so that the action does not cost the company time. and credibility. 2013). and to themselves to maintain the highest standard of ethical conduct which includes the IMA standards of competence. ethics is the foundation for making the right choices whether the choices are personal or business (Collins. and resources (Wilbanks. integrity. p. Ethics is an individual’s guide for choices and actions (Collins. When faced with an ethical dilemma. Charles violated the standards of competence. Management accountants and financial management are obligated to the public. Competence was violated because Charles did not perform his professional duties in compliance with relevant laws and regulations. Can you justify what Charles did? Charles falsified the income statement on two occasions out of fear of losing his job. Individuals will be faced with situations where it will be necessary to determine if a particular course of action is ethical. & Maher. Ethics in the workplace is no different than personal ethics. and credibility (Lanen. and added pressure from personal problems. 2014. In essence. 2012). confidentiality. to their profession.FORUM 1: INTEGRATIVE CASE 1-43 Forum1: Integrative Case 1-43 2 Individuals are born with inherent ethics but continue to learn and develop ethics through associations with others. Brennan. integrity. Anderson. Though his reasons may appear justifiable to himself. and because of Charles’s deliberate misrepresentation of sales on the income statement. being blacklisted by his boss. money. & Browne. there is no justification for what Charles did. 23). 2012). The standard of integrity was violated because Charles engaged in conduct that hindered him from ethically carrying out his duties.

p. Charles could have used an ethics hotline to speak confidentially with someone to better understand alternative courses of action. 20). Anderson. What could Charles have done to avoid the ethical dilemma that he faced? Assume that the company president would have made it impossible for Charles to work in Atlanta in a comparable job. p. The CEO and the CFO are responsible for the financial statements. the next level of authority could be the audit committee or the board of directors. 19) . The president of the organization is considered the CEO and Charles is the CFO. Anderson. Charles should then have discussed the issue with the next level of authority. & Maher. & Maher. 24). organizations should have a policy for resolving conflicts. 2014. 2014. 2014). Charles could also have spoken with his attorney to understand the legal ramifications and his rights relative to the ethical issue (Lanen. If the company’s policies were ineffective. Because Charles’s boss is involved in the ethical dilemma. Charles should have first followed the established policies of the company for resolution. What if the Securities and Exchange Commission discovered this fraud? Would Charles’s boss get in trouble? Would Charles? If the Securities and Exchange Commission discovered this fraud both Charles and his boss would get in trouble. . & Maher. Anderson. Ethical dilemmas are inevitable. p. To be better prepared. 2014. Charles’s credibility and the organization’s credibility could potentially be harmed because of their disclosure of unreliable information (Lanen. Anderson. The SarbanesOxley Act of 2002 requires that the CEO and the CFO sign the financial statements to show that the report has been reviewed and to their knowledge the financial statements fairly represent the 3 organization’s financial condition and results of operations (Lanen. therefore. & Maher.FORUM 1: INTEGRATIVE CASE 1-43 reason to discredit the accounting and finance profession (Lanen.

However. the audit committee revealed their findings to the President. I then met with my boss to go over my findings and to be advised of the next steps to be taken. please answer if you or the company you worked for have ever been faced with a similar situation. In a former position. Though the employee was not a member of management the higher levels of authority were necessary because of the amount of money involved and also because the employee reported directly to the president of the company. The employee who committed fraud was let go and faced legal prosecution by the organization. During an audit of the monthly statement of the President’s administrative assistant. I reported to the Vice President of Disbursements as the Credit Card Administrator and Program Leader.000. Employees of the organization were issued credit cards for travel and entertainment and for supplies. large purchases unrelated to travel and entertainment and supplies were discovered which totaled over $800. My first course of action was to obtain receipts from the credit card company for these purchases. After completing a thorough investigation. you must provide a few details as to the type of situation that occurred and how it was resolved. You do not need to release any company names or state anything that would give the company or its individuals away. My boss then spoke with the CFO who then spoke to the organization’s audit committee. One aspect of my job entailed auditing monthly credit card statements of corporate cardholders. .FORUM 1: INTEGRATIVE CASE 1-43 4 In addition.

NY: McGraw-Hill/Irwin.liberty. Retrieved from http://www. 15(1).ieee. Lanen. The legal environment of business: A critical thinking approach (6th ed. W. New Ethics and integrity: capstone professional tools. W. Anderson. & Maher. IT Professional. (2012.readperiodicals. (2013). (2012). N.). N. Retrieved from http://ieeexplore. Journal of Environmental M. S. L. Ethical dilemmas in the workplace. M. & Browne. Upper Saddle River: Pearson..jsp?arnumber=6427790 5 . Wilbanks. B. September 1).ezproxy. Fundamentals of cost accounting (4 ed. 60-61. B.html 1: INTEGRATIVE CASE 1-43 References Collins. W.. Brennan. (2014).