According to Statement of Ethical Professional Practice issued by the Institute of Management Accountants’ (IMA), all members of the accounting profession have the responsibility to mitigate conflicts of interest and communicate regularly with associates in the field to nullify apparent conflicts of interest (Longstaff, 2010). The scenario presents an ethical issue. There is a conflict of interest between the right things the accountant should do against what the CEO wants him to do. Ethical dilemma sets in as the accountant has a hard time discerning and refraining from engaging in conducts that prejudice conducting his duties with the best of interest of all.
If I were in the position of the accountant in the case study, I would strive to detach myself from any activities that may discredit the profession of accountancy. Even though my personal interests of retaining my job and paying mortgage are factors that would influence continuity of the company, I would not doctor fiscal records of the company to get a bank loan. I would advise the company CEO to look for more ethical ways to restore financial performance of the