Reference no: EM133381214

Topic: Professional Ethics / Standards of Ethical Conduct (10 marks) (Read up on this from your recommended texts to answer this question)

Mickee Lee joined BlueBlush Beauty in 2019. As the management accountant, her duties include the supervision of accounting operations and the preparation of financial statements and management reports for the Chief Financial Officer (CFO), Chan Tay Kai. Most of the essential oils and emulsions are from suppliers in South Korea. They are on good terms with their suppliers, having come to several arrangements to ensure a continuous supply of quality stocks. One of its regular suppliers is Kim K-Oils (KKO). It is a small, family owned olive oil supplier based in Jeju Island, South Korea, managed by Kim Soon Soon. Business with KKO has grown over the years and currently, supply orders from BBB account for more than 40% of KKO's sales. During the last monthly management meeting, the Purchasing Manager, Myles O'Donnell, reported that they were in the midst of finalizing a new major supply contract with Busana Oils in Spain, where most of BBB's essential oils will be sourced from 2022 onwards. Mickee and Soon Soon are childhood friends and Soon Soon was instrumental in helping Mickee get this job two years ago. After the meeting, Mickee became concerned with KKO's business since it relies heavily on BBB's orders to stay afloat. This is especially so when Soon Soon had revealed to Mickee that KKO had just ordered a new pod sorting machine in preparation for BBB's special order of black olives in the new year ahead. Mickee is contemplating telling Soon Soon about this switch in essential oil suppliers but is also aware that a cancellation of the special order by KKO could jeopardize the new year sales that BBB is counting on for its new product line.

Required:

a) Briefly describe the standards of ethical conduct for the management accountant (ie. Competence, Confidentiality, Integrity and Objectivity). Please ensure correct referencing is done.

b) Discuss Mickee's ethical responsibilities in this situation. Support your answers citing relevant standards of ethical conduct for management accountant.

c) Answer this part independent of your response in (b). Assume Mickee learns that Soon Soon has decided to cancel the order for the pod sorting machine required for BBB's black olive order. Mickee believes that Soon Soon must have heard rumours about BBB's intention to switch suppliers from some other source because she has not spoken to her. Should Mickee tell her superiors that KKO has cancelled the order for the pod sorting machine? Explain your answer.