If it Seems Too Good to Be True...

Abstract

In this case, students explore a situation that has implications relating to professional ethics(primarily as put forward in the IMA’s Statement of Ethical Professional Practice) in terms competence, conflict resolution, and confidentiality. As a fact-based case, it has sufficient complexity to provoke discussion. A young, relatively inexperienced, accountant was surprised to be offered the controllership of a prospering conglomerate of small construction-related businesses. While he had great rapport with the entrepreneur/owner/manager in the interview, he could only assume that a good word from his friend, an employee of the organization, had set him apart from more experienced candidates. At first, the work was challenging, but interesting. He was grateful for all he was learning and for the camaraderie. Then, after documents disappeared that would have helped him determine whether a lease was being incorrectly classified, he began to be more aware of areas that made him uneasy. There were charges to some of the businesses that could be personal expenditures. There were transactions recorded that could be construed as shifting assets or income among the separate business entities. When he tried to find answers to his concerns, his employer questioned his loyalty and told the accountant that the controller’s responsibility was to the business, not to any accounting rules or organizations. After working under strained circumstance for a while, the accountant found a way to leave gracefully in good standing. After time for reflection, he wanted to do something to rectify the situation he left. His was frustrated when he was advised by a hotline that the ethical standard of confidentiality prohibits his contacting outside agencies. (Teaching notes also address the multiple responsibilities of the internal accountant to the organization, the public, and the profession.)