Question

Harriet Moore is an accountant for New World Pharmaceuticals. Her duties include tracking research and development spending in the new product development division. Over the course of the past six months, Harriet has noticed that a great deal of funds have been spent on a particular project for a new drug. She hears "through the grapevine" that the company is about to patent the drug and expects it to be a major advance in antibiotics. Harriet believes that this new drug will greatly improve company performance and will cause the company's stock to increase in value. Harriet decides to purchase shares of New World in order to benefit from this expected increase.

Required:

What are Harriet's ethical responsibilities, if any, with respect to the information she has learned through her duties as an accountant for New World Pharmaceuticals? What are the implications of her planned purchase of New World shares?

Instructions

Answer all 2 questions above by "REPLY" to this Discussion.

A minimum of 2 research citations are required for your initial "REPLY"

Make sure you use the proper business communication writing rules as with minimum paragraphs: Introduction, Body of Analysis and Conclusion.

Respond to 2 of your classmates answers and give meaningful and positive feedback. Types of answers will not be accepted: "Yes, I agree with you." "Yup, that's right."

• If you agree with your classmate's view, then back it up, "Yes, I agree because......."
• If you disagree with your classmate's view, then argue it, "No, I do not agree with your findings, because......"

Answer 1

Accountants should act independently for the good of the company and its shareholder.His motive is to give a true and fair view of company to its shareholders.He should not indulge in any fraudulent activity or in any activity for personal gains.He should neither have any financial interest in the company. Independence is a must. Moreover if the company asks harriet moore to do something wrong he should deny the same. Neither he should indulge in fraud nor allow company or any other person related to indulge in such activities. Responsibility of Harriet is to keep the information confidential. He should not disclose this information with anyone.

2) In the given case Harriet tries to take undue advantage from the internal source and knowledge to purchase shares of the company.This is unlawful. Implication is imprisonment as well as fine.