Cost Accounting and Decision Making Essay

822 Words4 Pages
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
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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.

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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 in
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