Reference no: EM132487491

Question 1 - The unethical use of accounting information

ABC Learning was Australia's - and one of the world's largest - providers of early childhood education services until it collapsed spectacularly in the late 2000s., when it came to light that its reported financial success was built on a number of questionable accounting practices.

Required -

1. Search the internet for information about the ABC Learning corporate collapse and summarise the unethical accounting practices utilised by ABC Learning's accountants.

2. Which of the principles set out in the Accounting Professional and Ethical Standards Board (APESB)'s Code of Ethics for Professional Accountants did these actions contravene?

Question 2 - Whistle-blowing

1. If Ben decides to raise concerns about the product quality of the Benfield Voyagers, he will become a whistle-blower. Explain the term whistle-blower, and distinguish between internal and external whistle- blowing. Which approach should Ben follow if he does decide to raise his concerns?

2. If Ben decides to be a whistle-blower, discuss the five conditions that must exist for his action to be ethical.

Question 3 - Ethical decision making model

HighLight is an online company that sells lighting products to both the building industry and individual consumers. As a result of its very competitive price schemes, HighLight has developed an extensive customer base, which is reflected in its burgeoning database of customer details, purchasing history and Web usage data.

Recognising that this data is potentially valuable to third parties, HighLight's directors discuss the prospect of selling its customer database to a large insurance company, thus allowing the insurance company to target advertising and mailouts about home and contents insurance packages to home owners.

The directors are split on the issue - some view this as an exciting way to add value to their customers, through customised product offerings, while others see it as a gross misuse of information that is not in keeping with the original purpose for which the data were gathered.

You have been engaged by HighLight as an ethics consultant and asked to advise the organisation on the possibilities that exist to resolve the boardroom debate.

Required - Work through the 5 steps of the ethical decision-making model presented in the lecture to evaluate what course of action HighLight should take.