Professional Documents
Culture Documents
b. Why should management accountants create extra work for the organization by
deliberately adopting policies for internal costing that violate the generally accepted
accounting principles that must be used for external reporting?
In this situation involving a friend, the best approach is to be very direct and
confront the friend with the goal of getting him to amend the claim. This
could end your friendship, but it is the right thing to do. Avoiding the
situation is the worst thing to do, because, chances are Andrew will try the
same thing again and may very possibly get caught and then fired.
If Andrew refuses to refile, you should try one more time. On the final try
you should tell him that if he does not resubmit the claim you will be forced
to turn him in. Chances are this will work, but if it does not, under the
organization’s code of ethics you have an ethical responsibility to do the
right thing.
d. How might the company's control system be designed to foster high ethical standards
regarding reimbursement claims and other issues?