1. Review the paper you submitted for the Case Study 1 Assignment (Case 14-31 and related materials).
2. For your initial post, prepare a 6-9 sentence summary identifying the key information from your analysis of this case. The breakdown of your discussion should include:
   • For part 1 of the case, explain (in 2-3 sentences) your decision with the most important piece of evidence or rationale supporting your decision.
   • For part 2 of the case, explain (in 2-3 sentences) your decision with the most important piece of evidence or rationale supporting your decision.
   • For part 3 of the case, provide (in 2-3 sentences) the specific internal control(s) you would suggest and the rationale for why the control(s) you've chosen are the best for this situation.

Ethical practice is a fundamental aspect of managerial accounting, shaping an accountant's role in a company. Accountants are often faced with decisions that test their integrity, requiring adherence to established ethical guidelines to ensure fair, transparent, and responsible financial reporting. This paper applies the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice and guidelines for handling ethical issues to Case 14-31 from Garrison et al. (2024). By analyzing the case study, I will address the ethical dilemmas encountered by the manager and propose appropriate actions using the IMA's ethical standards. In Case 14-31, the manager faces ethical conflicts relating to budget reporting and performance evaluations. The central issue involves the temptation to manipulate financial data to meet short-term goals, which directly conflicts with the principles of honesty and fairness. According to the IMA Statement of Ethical Professional Practice, accountants must maintain integrity by refraining from activities that could discredit the profession, such as misrepresenting information for personal or organizational gain (Garrison et al., 2024). The manager's dilemma illustrates the pressure accountants face to balance organizational expectations with ethical obligations, particularly in performance reporting. The IMA outlines four key principles: honesty, fairness, objectivity, and responsibility (IMA, 2023). In this case, the manager's role requires a commitment to providing accurate and objective financial information. Manipulating data to meet budget goals violates these principles by undermining fairness and objectivity. To resolve this ethical dilemma, the manager should adhere to the IMA guidelines by reporting financial results as they are, without altering figures to meet expectations. Transparency in financial reporting ensures long-term trust and prevents potential legal consequences for both the individual and the organization (Garrison et al., 2024). Exhibit P-6 in Garrison et al. (2024) provides a structured approach for handling ethical decisions, which can be applied to the manager's situation. First, the manager must identify the ethical issue, which, in this case, involves the pressure to misrepresent budget results. The next step is to consider all parties affected, including the company, stakeholders, and the accounting profession. After identifying potential consequences, the manager should seek counsel from the company's ethical guidelines or a higher authority, such as an internal audit committee, to avoid unilateral decision-making. Finally, taking corrective actionsuch as communicating the issue with transparencyensures that the ethical standards are upheld. The real-world example of Enron's accounting scandal highlights the importance of ethical integrity in managerial accounting. Enron's manipulation of financial statements to meet short-term objectives led to a loss of credibility, legal repercussions, and the company's collapse. This case demonstrates the severe consequences of failing to adhere to ethical principles like honesty and transparency (Cunningham & Harris, 2021). By applying these lessons, managers in similar situations must prioritize ethical decision-making over short-term gains. The ethical responsibilities of accountants extend beyond meeting organizational goals; they are integral to maintaining the credibility of the profession. In Case 14-31, the manager's dilemma can be resolved by adhering to the IMA Statement of Ethical Professional Practice and following a structured process for addressing ethical issues. By applying these principles, accountants can navigate difficult situations while upholding the values of integrity, objectivity, and fairness. Ethical decision-making not only benefits the individual but also protects the organization from potential legal and reputational damage.

v

• Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2024). Managerial accounting with McGraw-Hill Connect. McGraw-Hill Higher Education.