Chapter 1, Problem 47IC

Identifying Unethical Actions (Appendix)

The managers of Quince Products (Problem 1-46) decide they will hire a management accountant to help them analyze the decision to expand their product line. They solicit bids from various accountants in the city and receive three proposals. In describing their qualifications for the job, the three state:

Accountant A: “I have recently advised the symphony on how to raise money and therefore I know the local area well.”

Accountant B: “I have advised several small firms on expansion plans.”

Accountant C: “I have advised Pear Company [Quince’s main competitor] and can share its experiences and insights with you.”

All of the proposals have the same price.

Required

1. a.      As the accounting manager of Quince Products, prepare a memo recommending which accountant you would prefer to retain. Be sure to include your reasons.
2. b.      Which, if any, of the accountants making a proposal are violating the IMA’s code of ethics? What is (are) the violation(s)?