Instructions:
This module discusses the use of information from managerial accounting systems and the use of costs in decision making. Please read and review the following case: When Change Isn’t So Good: A Story of New Management and Misleading Statements. (see attached)
Discuss the following in 1.5-2 pages
• As you review the IMA Statement of Ethical Professional Practice (see attached), which of the IMA’s overarching ethical principles are potentially compromised by Liz’s position?
• Is management perpetrating fraud? Is what they are doing illegal? Unethical? Explain. • How does the misleading information impact decision-making? • What damages could potentially be caused by the misleading information? • If you were a board member and found out about the changes and discrepancies in the
material presented, how would you feel? • Identify the stakeholders in this case. Then discuss how Liz’s decision may impact the
stakeholders. • What do you recommend Liz do? Be sure to defend your answer.
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