reply to the comment below with at least 250 words citation and reference. Amy should not make the changes Tony has requested as she must keep her ethics, morals, and priorities as an accountant in

reply to the comment below with at least 250 words citation and reference. 

  1. Amy should not make the changes Tony has requested as she must keep her ethics, morals, and priorities as an accountant in mind. The report that she must prepare to support capital equipment purchases has to be realistic and accurate. The changes Tony is requesting will (in the long run) damage expanding international operations since it’s not financially accurate and bending the truth. Amy should not make the changes Tony requested and should contact upper management or HR with her concerns regarding his immature and “threatening” behavior
  2. If I were in Amy’s shoes and were to make the changes Tony requested, I would inform the capital budget committee the problems with the analysis through a signed note (to show credibility as she has nothing to gain from this dishonesty Tony is requesting). We know that Tony is ethically in the wrong and the best outcome to arise from the situation (even if Amy presents the incorrect data) is to explain her case to the committee in real time. If anything, the committee would appreciate her honesty and concern for the company’s finances.
  3. Amy has a few routes she should take regarding Tony’s final request. First, she should definitely not give into his threatening behavior on changing the numbers on the Net Present Value as that would be dishonest and unloyal to the company. Ethics and honesty are part of the IMA Statement of Ethical Professional Practice and Amy is protected legally (job security) from not listening to Tony. Amy can explain to Tony her standpoint on why it is wrong to lie regarding a company’s finances, however, from the sound of it-he doesn’t seem to be the type to care. Therefore, it is recommended for Amy to seek help from upper management or even HR regarding her situation and how she feels stuck as Tony is her manager.
  4. Amy should first try talking to Tony and express her feelings on how unethical his behavior and requests are. Once he fails to understand her perspective, she can then seek guidance from HR and upper management. If somehow it is a political environment that doesn’t care to hear Amy and does end up firing her, she should then definitely report Tony’s behavior to the state accounting board and IMA. This way, the legal team can keep their eye on Tony and investigate his behavior. Once Tony is found guilty of violating ethics as a sworn CPA, he can get his license removed as well as have his record/reputation be forever tainted (and thus, would not be able to find another role as an accountant ever again).

References:

Davis C. E., & Davis E. (2020). Managerial Accounting, Enhanced eText (4th ed.). John Wiley & Sons. ISBN-13: 9781119577669

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