Ethical Scenarios
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Ethics Resources for Accounting Professionals
Management Accountants
Ethical Scenarios
Ethical Scenarios
Is it true that "The boss is always right"? Should I follow the management's instruction even if it appears to be biased?

In order to project splendid financial performance and healthy financial position, senior management may exert pressure on management accountants to use aggressive or even unrealistic assumptions when making forecasts. Sometimes, management accountants may be asked to render analyses to support the personal ambition of some senior management staff.

Different project teams have approached me over their budget plans. Which one should I entertain?

Management accountants are at times requested to prepare budgets and set targets for projects and units based on information drawn from the past, present and predictive insights about the future. Project teams and operational units may strongly disagree with the budgets and targets and consider them unrealistic. In order to make the targets more readily achievable, they may approach management accountants at the budget planning stage and try to influence them.

Ethical Scenarios
I recommend my relatives and close friends to buy shares of my company. Is it fine?
Management accountants of listed companies may have access to the company's confidential information (e.g. merger and acquisition plans) which is likely to influence the share price of the company. They may face the temptation to disclose such highly sensitive information to friends and relatives prior to the public announcement.
Management accountants should be aware of the threats as well as understand the legal requirements under the Prevention of Bribery Ordinance (POBO) (Cap. 201) and other relevant legislations. The above situations create various threats to the fundamental principles of ethics for professional accountants.
Topic of Interest Case Study Ethical Scenarios
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