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200101 Accounting Information For Managers

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You are a manager within a large construction entity and need to make a recommendation to the CEO on which tender to accept. The job being tendered for is worth millions of dollars, and you have a significant shareholding in one of the companies tendering. 

Part A


1. Determine the two key facts of the case.

2. Determine the two ethical issues of the case.

3. Determine the three ethical principles which might be at risk in the given scenario.

4. The following alternative courses of action, which you could take, have been identified. 

(a) Declare an interest and step outside of the decision-making process for this particular tender.

(b) Declare an interest and remain part of the decision-making process and complete your recommendation for your company.

(c) Don't declare an interest and continue to do your job by making a recommendation. 

Pat B

You are a small business owner who wants to enter an overseas market. You arrange to meet with a government official of the country you wish to do business with, in order to discuss your market entry. To be successful, you really need his support. During the discussion, you realise that he expects a monetary payment in exchange for his help.


I. Determine the three key facts of the case.
2. Determine the DLit ethical issue in the case.
3. Determine the ethical principles of the case.
4. The following alternative courses of action,which ou could take, have been identified. 

• Make the payment.
• Don't make the payment. 

Part C : Code of ethics for professional accountants 

You are an accountant with Maxim Ltd and are confronted with the following situations: 

(a) You are appointed the auditor of Baba Ltd, a producer of golf equipment. While on the premises carrying out some audit work, you are offered a new set of golf clubs in appreciation of your work to date. 

(b) You work for a lending institution and one of your friends has approached you for a loan. Your friend has been unable to obtain a loan elsewhere. You approve the loan for your friend. 

(c) You are on the local council works committee. It is considering a number of tenders for a park upgrade. Your best friend has submitted a tender, and you argue strongly in favour of that tender. 


For each of the above situations, state the one relevant APES 110 Code of Ethics for Professional Accountants principle which has been breached and briefly explain why. 
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