As a new CMA and accounting staff member at the FreshFood restaurant, your supervisor has asked you to prepare the monthly inventory report, which will be used to establish inventory on the company balance sheet. You discover the freezer is full of food that has spoiled and cannot be used. You suggest there should be an adjustment to the inventory account to write off this bad product as a loss/expense. Your supervisory tells you to ignore it because the company is really trying to show a profit this month for the investors. Are you in violation of the CMA Ethics Standards? Which Standard apples here? What should you do to resolve this situation?

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Four standards of ethical conduct in management accountants professional activities were developed b... View the full answer