QUESTION FIVE

Mr$.$ Tunen is struggling with his conscience. He is a senior accountant responsible for providing management information to several major budget holders in his organization. He has developed a very good working relationship with this group of senior managers over the years and has a good understanding of their departments and the issues they face.

One of these budget holders, Mr$.$ Nato, has raised a problem about a capital project that has overrun its approved budget. He has asked Mr$.$ Tunen to turn a blind eye to the future costs, which he is going to charge to other codes, concealing the adverse variances.

a$)$ Explain the ethical dilemma faced by Mr$.$ Tunen.

b$)$ Provide an outline of the ethical theories $($deontological and teleological$)$ and ethical approaches that help managers make ethical decisions and for each theory or approach give an example of its application in the public service.

$(7$ marks$)$