is this ethical? Tom Brown, the controller for MicroTech Software Company, is re
ID: 334114 • Letter: I
Question
is this ethical?
Tom Brown, the controller for MicroTech Software Company, is responsible for preparing the company's financial statements. He learns that sales for the first quarter of the year have dropped so dramatically that the company is in danger of bankruptcy. As a result, he applies for an accounting position with another software company that competes with MicroTech. During his job interview, Tom is asked why he wants to leave MicroTech. He replies truthfully, "The company's sales are down another 10% this quarter. I fear they will go out of business." At that time, MicroTech had not released its sales results to the public.
Explanation / Answer
No it is not ethical, Tom may not have to disclose nay information related to the company financial condition. he may not disclose nay confidential information of the company to the outsiders. He is expressly forbidden from providing nonpublic sales information to anyone. Accountants are privy to to variety of private and often sensitive information about businesses. so it is their ethical duty to maintain the confidentiality entrusted to them.
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