Notesale: Turn your study into money

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Emmalis Diaz
ACCT560_SP20
February 23, 2020
M7 Case: Tough Choices: Ethical Considerations in Whistle Blowing
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Not only should they be cautious about
others performing illegal activities, but they should act with ethical behaviors
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Management accountants must inspect accounting entries and make sure they are
properly made
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All accounts should
be monitored properly, and all transactions should have the appropriate documentation
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The IMA states that
professionals that encounter unethical behaviors, should not ignore them, but should
seek resolution immediately
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Based on what Annie has observed, do you think Jennifer is doing something unethical? Do
you think Annie is doing something unethical? Defend your answers
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What I find suspicious is that she is doing extra work and does not let anyone
get involved with certain accounts
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That may be because she does not want someone else to find how she
has been tampering the account
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Multiple transactions have added up
to a large amount that was made out to “Treasurer” which is very suspicious
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I think Annie is being unethical because she has not
reported Jennifer’s behavior to anyone
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As the IMA states, Annie should not ignore the situation, but seek a resolution because if
she does not, Annie may also be at risk of being involved with Jennifer because she did
not report it
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Who is being affected if Jennifer is embezzling funds? Who is being affected by Annie’s
decision to keep her concerns to herself?
- Due to Jennifer’s tampering of the funds, the whole city is affected
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Many
employees have been let go and Annie feels that she may be next and that is why she
has looked into the accounts and financial numbers
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Because Annie This study source was downloaded by has

not reported the unethical behavior, the city continues to suffer
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As a result of Annie being
silent, she is equally responsible for the downfall of the city
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Assume Annie feels that Jennifer is doing something wrong
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Which of these options do you
think would be the best? Why?
- I believe that Annie has a couple of options in handling this situation with Jennifer
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She questioned Jennifer
before, but it was quickly brushed off
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They will most likely open an investigation and get to the bottom of the issue and
determine if Annie’s assumptions are correct
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The last option, which I believe is the best option, is that Annie
should conduct an audit
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She could take a more in-depth look into the DCDA account and
how money was moved through and to whom
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If she finds problems after performing the
audit, she will be able to provide the City Mayor and council evidence and facts on
Jennifer’s tampering of city funds
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Assume that Annie had confided her concerns to you and her desire to come forward and
report those concerns
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- If Annie came to me for advice on whether or not she should report her concerns, I
would tell her to do so
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Honesty, fairness,
objectivity, and responsibility are all the core ethical principles that the IMA stands by
and encourages professionals to adhere to them
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The city has already been cutting costs
and letting go of their employees, Annie would be a risk of getting let go
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She will also help the city because they
will be able to have enough funds to pay their employees and continue to develop the
city
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Once she reports Jennifer’s actions to the council, she will be at peace and know
that she did what was right
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What do you think Annie should do in this situation?
- I would think Annie should report the situation to the Mayor
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But before reporting the
issue to the Mayor, Annie should do some digging and conduct an audit on Jennifer’s
accounts
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By conducting an audit on the accounts, she will be able to
collect the evidence and facts to provide the mayor with her report
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I think this will be a good
way for Annie to prove her worth in the business and the city

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