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Mr D, a CIMA qualified accountant, is working on the preparation of a long term profit forecast required by the local stock marketprior to a new share issue of equity shares. At the most recent board meeting the directors requested that the forecast be inflated. In Mr D's view this wouldgrossly overestimate the forecast profit. Theboard intends to publish the revised inflated forecast.
Which THREE of the following are the ethical options available to Mr D in this situation?
Suggested Answer: A, C, D
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20 comments · newest first
VO
Von
1 month ago
Ultimately, he needs to weigh his options carefully.
TR
Truman
1 month ago
It's a tough call. Ethics vs. job security.
JE
Jesusa
2 months ago
Submitting the original forecast could lead to serious consequences.
VO
Von
2 months ago
Delegating the work? That feels like avoiding responsibility.
TR
Truman
2 months ago
But resigning might be the only way to stay true to his values.
JE
Jesusa
2 months ago
Exactly! Reporting could protect him and uphold integrity.
VO
Von
2 months ago
Then he might have to report it. Ethics over profit, right?
TR
Truman
2 months ago
True, but what if the manager supports the board's decision?
JE
Jesusa
3 months ago
Discussing with the line manager is crucial. Transparency is key.
VO
Von
3 months ago
I disagree. Adjusting figures seems risky but it's just a forecast.
TR
Truman
3 months ago
This is tough. I think Mr D should consider resignation.
AL
Alberta
3 months ago
D sounds like a good idea, but will it backfire?
MA
Martina
3 months ago
Wait, can he really just ignore the board's request?
SA
Sarina
4 months ago
B seems risky, forecasts should be honest too!
PO
Portia
5 months ago
A is a strong move if integrity is at stake.
AN
Anika
5 months ago
Definitely option C, talking it out is key!
TU
Tuyet
6 months ago
I’m leaning towards submitting the original forecast without approval, but I’m not sure if that’s ethical or just risky. It’s a tough call!
DE
Delsie
6 months ago
Reporting to authorities sounds serious, but I wonder if that’s really necessary in this case. I feel like there should be a middle ground.
CA
Carmela
6 months ago
I think I saw a similar question about ethical dilemmas in our practice exams. Adjusting the figures seems wrong, but I’m not sure if discussing it with the manager is enough.
VI
Vivienne
6 months ago
I remember discussing the importance of ethical standards in accounting, especially when it comes to forecasts. Resigning could be an option, but it feels drastic.