Amy Kimbell was recently hired as an accounting manager for Hi-Quality Productions Inc., a publicly-held company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Amy Kimbell was recently hired as an accounting manager for Hi-Quality Productions Inc., a publicly-held company producing components for the automotive industry. One division, Alpha, uses a highly automated process that had been outsourced for a number of years because the capital investment required was high and the technology was constantly changing. Two years ago, the company decided to make the necessary capital investment and bring the operation in house. Since all major capital investments must be approved by the Board of Directors, the budget committee for the Alpha Division recommended the $4 million investment to the Board, projecting a significant cost savings. In her new job as accounting manager, Kimbell is on the budget committee for the Alpha Division. The Board has requested from the committee a post-audit review of the actual cost savings. While working on the review, Kimball noted that several of the projections in the original proposal were very aggressive, including an unusually high salvage value and an excessively long useful life. If more realistic projections had been used, Kimbell doubts that the Board would have approved the investment. When Kimbell expressed her concerns at the next meeting of Alpha's budget committee. she was told that it had been the unanimous decision of the committee to recommend the investment because it was thought to be in the best long-term interest of the company. According to the committee members, the post-audit report would not discuss these issues; the committee members believe that certain adjustments to the review are justified to ensure the success of the Alpha division and the company as a whole. REQUIRED: A. B. Using the categories outlined in IMA's Statement of Ethical Professional Practice. identify the standards that are specifically relevant to Kimbell's ethical conflict and explain why the identified standards are applicable to the situation. According to IMA's Statement of Ethical Professional Practice, what specific actions should Kimbell take to resolve her ethical conflict? Amy Kimbell was recently hired as an accounting manager for Hi-Quality Productions Inc., a publicly-held company producing components for the automotive industry. One division, Alpha, uses a highly automated process that had been outsourced for a number of years because the capital investment required was high and the technology was constantly changing. Two years ago, the company decided to make the necessary capital investment and bring the operation in house. Since all major capital investments must be approved by the Board of Directors, the budget committee for the Alpha Division recommended the $4 million investment to the Board, projecting a significant cost savings. In her new job as accounting manager, Kimbell is on the budget committee for the Alpha Division. The Board has requested from the committee a post-audit review of the actual cost savings. While working on the review, Kimball noted that several of the projections in the original proposal were very aggressive, including an unusually high salvage value and an excessively long useful life. If more realistic projections had been used, Kimbell doubts that the Board would have approved the investment. When Kimbell expressed her concerns at the next meeting of Alpha's budget committee. she was told that it had been the unanimous decision of the committee to recommend the investment because it was thought to be in the best long-term interest of the company. According to the committee members, the post-audit report would not discuss these issues; the committee members believe that certain adjustments to the review are justified to ensure the success of the Alpha division and the company as a whole. REQUIRED: A. B. Using the categories outlined in IMA's Statement of Ethical Professional Practice. identify the standards that are specifically relevant to Kimbell's ethical conflict and explain why the identified standards are applicable to the situation. According to IMA's Statement of Ethical Professional Practice, what specific actions should Kimbell take to resolve her ethical conflict?
Expert Answer:
Answer rating: 100% (QA)
A Relevant Standards from IMAs Statement of Ethical Professional Practice 1 Competence Kimbell should possess the necessary skills and knowledge to ev... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
Imagine a rocket that has the ability to move close to the speed of light. This rocket is traveling at 0.78 c. A clock is on the rocket. How much time would a stationary observer measure 60.00...
-
After five years with a national CPA firm with mostly large manufacturing clients, Amy Kimbell joined Hi-Quality Productions Inc. (Hi-Q) as manager of Manufacturing Accounting. Amy has both CPA and...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
What are the values of m and n after executing the following code? int n = 123456789; int m= 0; while (n != 0) { } m (10 m) + (n % 10); n = n/ 10;
-
A 742-nm-thick soap film (nfilm = 1.33) rests on a glass plate (nglass = 1.52). White light strikes the film at normal incidence. What visible wavelengths will be constructively reflected from the...
-
Research for this chapters Adaptive Selling Today Training Video revealed that anger does surface during the sales presentation and can be very challenging to negotiate. Anger can be something the...
-
Define these terms: a. Skimming b. Kiting c. Lapping d. Kickbacks
-
Edington Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $15 and $25, respectively. Because of the intense competition Edington...
-
Marcia's pizza shop has sales of $159,600. The cost of goods sold is $77,200 and the other costs are $8,700. Depreciation is $1,300 and the tax rate is 21 percent. What is the net income (after tax)?...
-
The entity reports the following transactions for the 2022 tax year. The trustee accumulates all accounting income for the year. Operating income from a business $500,000 30,000 Dividend income, all...
-
xjs f(x)= (x+; e find f(x)
-
Solve the following equation. 252 = (a + 5) + a a= Question Help: B Video BloBook
-
Enhancing Data Management and Proposing Dimensional Modeling for Improved Data Warehouse Architecture in Oil Company. In this case study, your objective is to conduct a comprehensive analysis of the...
-
13. Find the zeros of P(x) = x3 + 5x + 4x + 20
-
A car starts 200 m west of the town square and moves with a constant velocity of 15 m/s toward the east. Draw a d vs. t graph that represents the motion of the car a. Write the equation that...
-
Question 2 : Consider the following network. Suppose all 4 nodes are customers. 6 4 7 5 5 We want to open a DC so as to minimize the longest distance to any customer. Suppose the DC should be located...
-
4) Regardless of the transaction-related control objective being enhanced, is this a preventive control or is this detective control? Explain
-
1. What is the semi-annually compounded interest rate if $200 accumulates to $318.77 in eight years? Answer in percentage with two decimal places. 2. What is the quarterly compounded interest rate if...
-
Choice Culinary Supply, Inc., sells restaurant equipment and supplies throughout most of the United States. Management is considering adding a gelato machine to its line of ice cream making machines....
-
BusServ.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales . . . . . . . . . . . . . . . . . . . . . . . $8,000,000 Net...
-
What are cash equivalents, and why are they included with cash on a statement of cash flows?
-
Answer the same question as in the previous problem but for the scheme n+1 u+ - u i At un i+1 1 -u-1 +c. = 0. 2Ax
-
Modify the scheme (7.39) for the Burgers equation by changing the central difference approximation of the convective term to the upwind approximation. Assume that \(u\) is always positive. How does...
-
Repeat Problem 7.4 for the scheme based on the Runge-Kutta method of the second order (7.51).
Study smarter with the SolutionInn App