Ethics case study
Ethics case study
Instructions to students
1-
The assignment length should be
up to 700 words
2-
The total marks assigned for
this assignment is 10 marks.
3-
E-version of the assignment
should be in a PDF format
4-
The assignment has been created
using safe assign and similarity test will run after your submission.
5-
Plagiarism will be penalized
according to the following policy:
Originality reports
(Similarity levels):
Blow 25% acceptable and no actions
are required.
Between 25% - 49% penalty is required (20% of the given marks
to be taken away)
Between 50% - 74 % penalty is required (50% of the given marks
to be taken away)
Between 75%-100% penalty is required (100% of the given
marks to be taken away)
6-
Write the resources you used
Ethics Case
Mubark Company is an elevator repair company located
outside of Doha, Qatar. For the last two years, the company has recorded net losses
due to a sharp decrease in customer demand. In an attempt to improve its
financial performance, the company hired Mr. Rashid Salim as the managing
director. Mr. Rashid was known in the community as a person who is well
respected and cares deeply about his work. He has excellent experience in
helping companies that report net losses improve their financial performance
and become profitable again.
One of the first things that Mr. Rashid did was review
the company's financial records. He decided to meet with Maryam Mohammed, the
company's Chief Financial Officer. During the meeting which took place on
December 22, 2014, Mr. Rashid said to Maryam: "I noticed that on December
1, 2014, we received QR 560,000 from Gulf Water Company in exchange for elevator
maintenance services which we will provide for a period of 6 months. I also noticed
that on the same date, you recorded this amount by a journal entry as a
liability. However, if you read the contract carefully, you will notice that we
were required to start providing services from December 2, 2014. I would like
to kindly request you to correct your December 1 entry to show that we have
earned revenue of QR 560,000. Finally, I would like to remind you that our
company is going through a very difficult financial period and ignoring this QR
560,000 of revenue will hurt our company very badly."
Maryam asked to study the request and to get back to
Mr. Rashid in two days. Before the meeting was over, Mr. Rashid turned to
Maryam and said: "I would like to tell you that our company contributes to
charities and offers financial assistance to poor families in other countries.
Your help in correcting the journal entry will certainly show that we are no
longer a company that reports a net loss. Of course reporting positive net
income this year will help us to succeed in the market. As you know this
success will also benefit the community and poor people all over the world. I
hope you can take this into account when you consider my request."
Required:
- Are there any ethical issues that face Maryam Mohammed, the Chief Financial Officer of Mubark Company, as a result of the request made by the managing director, Mr. Rashid?
(2 points)
- Who are the stakeholders that are affected by the request made by Mr. Rashid.
(1
point)
- Identify the alternative courses of action that Maryam Mohammed could consider?
(2 points)
- What action would you advise the Maryam to take?
(2 points)
- "Ethics are important in the accounting profession” Briefly discuss this statement in by addressing the following issues:
-
The importance and the role of
ethics in the accounting profession.
(1 point)
-
Give examples of the accounting
ethical standards that should be followed by the accountant.
(2 points)
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