a) Explain TWO (2) aspects in the codes of ethics of a management accountant that have been followed or violated by Mr Ali. Justify your answers. b) Based on your answer in (a), advise Mr Ali if he should pursue his plan. (c) Recommend TWO (2) points that Mr Ali can use in explaining his decision in (b) to the FC.
Mr Ali is a newly appointed
One morning, Mr Ali received a phone call from the Financial Controller (FC).
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FC: |
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Good morning, Ali. |
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Mr Ali |
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Good morning, sir. |
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FC: |
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Ali, the reason I’m calling you this morning is because I want you to take a look at our bidding numbers. In the last three months, we had lost quite a significant number of tender bidding. Looks like we were losing in term of our cost, especially to our closest competitor, Charlie Berhad (CB). And now, the CEO is badgering me, asking me to come up with some solutions. |
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Mr Ali |
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I see. I will ask some costing documents from the accounts assistant, and I will see in which area that we should improvise. In that way, we can lower our cost, and perhaps after this, we can beat the bidding price of CB. |
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FC |
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That is not what I meant, Ali. I understand that you were employed by Bravo and Associates before this. This consulting firm has been referred to by CB for quite sometimes. I believe that you were part of the team before this. So, maybe you could dig out some information on our competitor’s costing, so that we can work out ours. What do you say? |
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Mr Ali |
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Okay sir. I will see what I can do. |
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FC |
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I expect to have some positive answers. This may be good for your performance appraisal. I will call you again in three days. Thank you Ali. Good bye. |
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Mr Ali |
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Good bye, sir. |
The phone clicked. Mr Ali is thinking of the costing information of CB that he had saved earlier in his thumb-drive. “I will have a look at it and maybe provide a little information. After all, AB is my new employer. Giving a little information will not hurt CB. And perhaps, there will be fat bonus for me if AB can win a few tender biddings after this”, he smiled to himself when the word “bonus” came across his mind.
He quickly calls for the accounts assistant, asking for AB’s related documents. Next, he scans his thumb drive, looks for the related files of CB, and starts to provide a report.
REQUIRED:
a) Explain TWO (2) aspects in the codes of ethics of a management accountant that have been followed or violated by Mr Ali. Justify your answers.
b) Based on your answer in (a), advise Mr Ali if he should pursue his plan.
(c) Recommend TWO (2) points that Mr Ali can use in explaining his decision in (b) to the FC.
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