Question

Harriet Moore is an accountant for New World Pharmaceuticals. Her duties include tracking research and development spending in the new product development division. Over the course of the past six months, Harriet has noticed that a great deal of funds have been spent on a particular project for a new drug. She hears “through the grapevine” that the company is about to patent the drug and expects it to be a major advance in antibiotics. Harriet believes that this new drug will greatly improve company performance and will cause the company's stock to increase in value. Harriet decides to purchase shares of New World in order to benefit from this expected increase.

Required:

What are Harriet's ethical responsibilities, if any, with respect to the information she has learned through her duties as an accountant for New World Pharmaceuticals? What are the implications of her planned purchase of New World shares?

Answer 1

1)accountant must posses the transparency and integrity he must  give a true and fair view of company to its shareholders.

He should not indulge or help others in any fraudulent activity for his personal gains or the gains of others.

Accountants should act independently and doesnot hold any financia linterest or make personal gains .

he must work for good of the shareholders and the company .he must not do window dressing or insidertrading or any act which increases his personal gains or his relatives

A accountant has the most important job to be done in organisation and he should be careful of information he has

2) In the given case Harriet tries to take undue advantage from the internal source and knowledge to purchase shares of the company.this is against the law and he will be liable with punishment for insidertrading and even imprisonment for the act