Baden Foods, a large privately owned food John Brigley CPA, is the controller of
ID: 2406151 • Letter: B
Question
Baden Foods, a large privately owned food John Brigley CPA, is the controller of processing company located in southern Ontario. Brialey received his designation as a certified protes sional accountant several years ago and has been working his way up the corporate ladder at Baden Foods. As controler, Brialex is responsible for coordinating the preparation of the an- nual operating budget, which includes projections of revenues and expenses for the coming year. Once the budget is approved by James compares actual results to the budget projections. To provide an incentive for the senior management team to make decisions that benefit the company.as.awhole last year Davis established a bonus plan. In any month that the company's actual operating income (revenues minus expenses) is better than the budgeted amount, all members of the senior management team, including the CFO, the controller, the vice-president of Production, and the vice-president of Marketing, receive a bonus. Last year was the first year the new bonus plan was used, and bonuses were paid out in 5 of the 12 months of the fiscal year.Explanation / Answer
1. Robsons request for A conservative Budget should be clearly Rejected as its is unfair & Unethical for a employee to Manipulate the aBudget For the personal Benefit in short run it may look like the employess are getting benefited by the conservative budget but in long run it may effect badly As intentionally lower budget may result badly
And coming to Brigleys Behaviour he should act according to The code Of Professional ethics If robsons request is accepted it voilates to major Ethical Rules that is
Code Of Ethics No 3
Issue True Statments As an employee u must always issue true statments no matter if senior authority is requesting to change but u must always isse true Ststments
Code Of Ethics No 6
Act As Faithful Agent under this code an employee,director, manager and each and every person must be faithful to there organisation
2.I recommend Brigleys that he must not accept the Robsons request as it voilates no matter even that budget is useful to get the extra bonus u must not comply any activity which voilates the code of profeesional ethics
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