Erle Smith is a financial controller with Practical Solutions Ltd, an entity that sells software products to

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Erle Smith is a financial controller with Practical Solutions Ltd, an entity that sells software products to accounting firms and small businesses. At present, Mr Smith is analysing a number of software packages that focus on job costing. He needs to pick one package that he can recommend to his clients. Each software vendor is keen to have their software selected as it will result in a significant increase in sales for their company.
Anitah Loh is a salesperson for software company Dogto Ltd. She has told Mr Smith that he should go to Los Angeles to analyse her company’s software package properly, because the programming experts there could give him a thorough demonstration. Ms Loh has also suggested that he take his family, so that he feels relaxed in a foreign country and is in the right frame of mind to undertake his analysis. She also suggests that Disneyland is worth visiting while Mr Smith is over there. Dogto Ltd would pick up the expenses for the trip.


Required
a. Do you think Mr Smith should take the trip? Outline any ethical concerns involved.
b. Do you think the management of Practical Solutions Ltd should allow Mr Smith to go on the trip?
c. Do you think that Practical Solutions Ltd should have a code of conduct? What would be the advantages and disadvantages to Practical Solutions Ltd of having a code of conduct?

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Accounting Business Reporting For Decision Making

ISBN: 9780730363415

6th Edition

Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver

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