Explore BrainMass
Share

Accountants as internal consultants: ethical issues

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

In some organizations, accountants act as "internal consultants"; they use their knowledge of the company's financial workings to advise the company on financial decisions.

Answer the following questions:

1. What are the ethical considerations for accountants who serve as internal consultants?
2. Do they differ from the ethical issues faces by accountants who do not act as internal consultants?
3. What are the differences / examples of managerial accounting vs. financial accounting?

© BrainMass Inc. brainmass.com October 16, 2018, 5:00 pm ad1c9bdddf
https://brainmass.com/business/business-ethics/accountants-internal-consultants-ethical-issues-42115

Solution Preview

ACCOUNTANTS WHO SERVE AS INTERNAL CONSULTANTS MUST HAVE COMPETENCE. THIS MAY NOT BE AS IMPORTANT FOR OTHER ACCOUNTANTS

Management accountants have a responsibility to:
§ Maintain an appropriate level of professional competence by ongoing development of their knowledge and skills.
§ Perform their professional duties in accordance with relevant laws, regulations, and technical standards.
§ Prepare complete and clear reports and recommendations after appropriate analyses of relevant and reliable information.

ACCOUNTANTS WHO SERVE AS INTERNAL CONSULTANTS MUST HAVE CONFIDENTIALITY THIS MAY NOT BE AS IMPORTANT FOR OTHER ACCOUNTANTS
Management accountants have a responsibility to:
§ Refrain from disclosing confidential information acquired in the course of their work except when authorized, unless legally obligated to do so.
§ Inform subordinates as appropriate regarding the confidentiality of information acquired in the course of their work and monitor their activities to assure the maintenance of that confidentiality.
§ Refrain from using or appearing to use confidential information acquired in the course of their work for unethical or illegal advantage either personally or through third parties.

ACCOUNTANTS WHO SERVE AS INTERNAL CONSULTANTS MUST HAVE INTEGRITY THIS MAY NOT BE AS IMPORTANT FOR OTHER ACCOUNTANTS

Management accountants have a responsibility to:
§ Avoid actual or apparent conflicts of interest and advise all appropriate parties of any potential conflict.
§ Refrain from engaging in any activity that ...

Solution Summary

The solution of 861 words breaks down the type of work accountants do while stressing the importance of certain traits. Each category of work is further subdivided into managerial vs. financial accounting.

$2.19
Similar Posting

Discussion board questions

In some organizations, accountants act as "internal consultants"; they use their knowledge of the company's financial workings to advise the company on financial decisions.

What are the ethical considerations for accountants who serve as internal consultants? Do they differ from the ethical issues faces by accountants who do not act as internal consultants?

Question #1

_______________________

Discussion Board

Deliverable Length: 4-6 paragraphs
Activity Based Costing in the Information Age

Activity based costing systems provide a much more accurate picture of product costs than do traditional product costing systems. This exercise focuses on an article presented on the Web site of the ACA Group, an alliance of highly trained and experienced consultants and instructors. The ACA Group provides in-house training, management consulting, and systems installation. You may recognize the names of some of the Group's clients including General Motors, Nissan Motor Company, Hughes Aircraft Company, Dole Packaged Foods, Gillette, Xerox, Gateway, and Anheiser Busch. The title of the article used for this exercise is entitled "Activity based Costing in the Information Age." (http://www.theacagroup.com/activitybasedcosting.htm). It was written by Jim Tarr, president of J.D. Tarr Associates. Mr. Tarr has over 25 years experience in consulting, senior management, and in industrial and manufacturing engineering. You have been asked by your manager to read the article and prepare a brief for other managers in the organization. The brief must answer the following questions.

1. What are some of the advantages and disadvantages of traditional product costing systems?

2. For what type of business case were traditional costing systems designed? Why isn't a traditional costing system appropriate for today's companies?

3. What is activity based costing? How does this system differ from traditional costing systems?

4. What are some of the benefits that can be derived from even a simple activity based cost model?

Question #2

_________________

Discussion Board

Deliverable Length: 6-8 paragraphs

The organization that you work for has been thinking about implementing one of the items below and they have asked you to prepare a summary of these topics. Using the Cybrary, the internet and other resources, research the following topics:

* Balanced Scorecard
* Economic Value Added

Using the Discussion Board, contrast and identify common themes among each of the

For extra points, who can give me 3 paragraphs on the discussion board for EVA and Balanced Scorecards? It has to be referenced and solid material.I want 5 sample compan

Question #3

____________________

Deliverable Length: 2-3 paragraphs

1. Managers should base pricing decisions on both cost and market factors. In addition, they must also consider legal issues. Describe the influence that the law has on pricing decisions.

2. "It is impossible to use DCF methods for evaluating investments in research and development. There are no cost savings to measure, and we don't even know what products might come out of our R&D activities." This is a quote from an R&D manager who was asked to justify investment in a major research project based on its expected net present value. How would you respond to this statement? Do you agree or disagree? Explain.

Question #4

___________________

Discussion Board

Deliverable Length: 3-4 paragraphs

You have been asked to speak about the topic of responsibility centers to a group of executives at a conference.
For this speech you should select a company/business that you are familiar with and briefly describe it. Give three examples of responsibility centers in that business. Describe how these responsibility centers interact.

Question #5

View Full Posting Details