3.2 Ethical issues (5 marks)

During data collection for the transition from an old management accounting system to a new activity-based cost (ABC) management system, you see a managers reported time allotments. You know that the data supplied by the manager are completely false. You confront the manager, and she states that she is worried that if she reports how she actually spends her time, her job will be altered, and it will also be found out that she is not really performing very well. She implores you not to tell anyone because she has needed to take time off to take care of her chronically ill parents medical expenses.

Required: (Note: bullet point answers are sufficient)

What actions would you take? Explain.