Ethical dilemma case

Ethics Dilemma Case name: It was just a Careless Mistake…

Watch the video before answering the questions: https://www.youtube.com/watch?v=ZwFyASop8nc

Read to start?

• Yes

• No

What is the name of the Finance Director?

• Johnny

• Daniel

• David

• John

What is the name of the accounting staff reported to David, the Finance Director?

• Lauren

• Lily

• Lorrein

• Linda

How much is the sales return that needs to be adjusted?

• $3.5 million

• $4.2 million

• $4.5 million

• $4.0 million

What is the name of the Sales Director?

• David

• Linda

• Johnny

• Nicolas

How many units did the sales staff shipped? (i.e. the wrong units)

• 5,000 units

• 55,000 units

• 5,500 units

• 50,000 units

Referring to the five fundamental principles of ethics in the CA ANZ Code of Ethics, which principle/s will be violated if David defers the adjustment till January next year?

• Integrity

• Objectivity

• Professional Competence and Due Care

• Confidentiality

• Professional Behaviour

According to the Code of Ethics, who should David consult in such an ethical dillemma?

• CEO

• Audit committee

• His friend, who is a CFO in another company

• Board of Directors

Who are the external parties that David could seek advice from?

• Professional accounting bodies, such as CA ANZ, CPA Australia, ACCA

• Media, like TVNZ or NZ Herald

• A legal counsel

• A regulatory body like FMA, if his company is publicly listed

If you are in David's position, and CEO insists that you shall defer the accounting adjustment to January, what would you do?

• Whistleblow to an external party such as CA ANZ

• Whistleblow to an internal party, such as audit committee/Board of Director

• Follow CEO's advice and delay adjustments till January

• Resign from the Finance Director position