Suppose you are controller of a medium-size oil exploration company in west Texas. You adhere to the standards of ethical conduct for management accountants.
Suppose you are controller of a medium-size oil exploration company in west Texas. You adhere to the standards of ethical conduct for management accountants.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Suppose you are controller of a medium-size oil exploration company in west Texas. You adhere to the standards of ethical conduct for management accountants.
1.
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Late one Friday afternoon you receive a geologist's report on a newly purchased property. It indicates a much higher probability of oil than had previously been expected. You are the only one to read the report that day. At a party on Saturday night, a friend asks about the prospects for the property.
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2.
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An oil industry stock analyst invites you and your spouse to spend a week in Tahiti free of charge. All she wants in return is to be the first to know about any financial information your company is about to announce to the public.
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3.
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It is time to make a
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4.
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You do not know whether a particular expense is deductible for income tax purposes. You are debating whether to research the tax laws or simply to assume that the item is deductible. After all, if you are not audited, no one will ever know the difference. If you are audited, you can plead ignorance of the law.
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Requirement
1. How would those standards affect your behavior in each of the situations?
Question content area bottom
Part 1
Situation 1.
The standard of ? applies. The information in the geologist's report
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