Question

Christine Jones is working for ATB Pty Ltd. As a junior managerial accountant. ATB Pty Ltd. is planning to purchase a new machine from Delta Ltd. Christine Jones has been assigned to produce a cost-benefit analysis report on the new machine. She has not told anyone in the company that his brother is working for Delta Ltd. as a sales executive. She has discussed with her brother about the planned purchase of the new machine from his company. To support her brother to meet his annual sales target, Christine overstates the qualitative benefits and understates the costs associated with this new machine in the analysis report.

Describe Christine Jones’ ethical responsibilities as a professional accountant in this situation.

Answer 1

Under this situation, Christine Jones should avoid any personal bias and should comply with the following fundamental ethical responsibilities:

1-Professional integrity- The accountant must be honest and straight forward towards the business relationship and profession.

2-Objectivity- The professional accountant should refrain themselves from any personal bias, conflict of interest and any undue influence of others while making any business decision.

3-Professional competence- The accountant should always update his knowledge and skill sets according to the prevailing development in practice, legislations and techniques to ensure competency in professional services provided to the client.

4-Confidentiality- An accountant should not disclose any confidential information obtained as a result of business relationships.An accountant must refrain from disclosing any confidential information to third parties unless there is a legal or professional right or duty to disclose. Confidential information should not be used for the personal advantage of professional accountant.

5-Professional behaviour- Professional accountant should adhere with the laws and regulations and should avoid any practice that descredits the profession.