Question

1. An independent review of Toshiba found that the company had inflated its profits.

Assume you were one of the managerial accountants involved in this overstatement of profits, list and explain two standards from the IMA Statement of Professional Practice which would have been violated. (4 points)

     A.

     B.

2. The Statement of Professional Practice also gives three steps to resolve an ethical conflict. Tashiba’s chief executive, Hisao Tanaka says that he did not encourage improper accounting, but that his staff made that assumption. Which of the three steps listed in the standard would have resolved this misunderstanding? How? (3 points)

3. List three entities, other than the accountants and the CEO, who are affected by the accounting irregularities and explain how they are affected. (3 points)

      A.

      B.

      C.

Answer 1

As per the given sitration like managerial Persons in Toshiba have violated Imao professional Standards Integrity and ereclibility A. indegally - interning is the practice of being honest and showing a consistant and uncompromising adherence to shong moral and ethical principles and values in ethics integning is regarded as the honesty and the bush fullness or accuracy of one action. B. Professiarad Credibility :- 1. It is the main Requirement for a leadership, Credibility means the quality of being trusted and bellened in The quality of being convincing or beliening. The professional Credibility includes one's education erepenience, performance and demonstrated professional dewelopment. la An ethical Conflits occurs when a member of an - organization or any managerial person male a decesion which is Hegal illegal or inappropriate (cs for thirch party, it Results from the smallest lies to CamScanner

The decesions that can affect employpes within the Company , investors or lostimen . stips to Resolue ethical Conflict is » Identify and evaluate Courses of Action - Consider How each alternatives effect Stateet Sfatechololers - Use ethical reasoning to resolve the dilemma evaluates the rights of each party and your obligations to them. 30 Accounting regulati megulad irregulanties will effect share holders , board of directors and cro of a company. Manupulation of financial Statement will result improper finance Controll for a CFO , And the brand of directions will behold be held liable for the tuhare cs Bellefletin of inflated or irregulov profit accounting