Reference no: EM133163884

Question - Consider the following scenario with regard to APES 110 Code of Ethics for Professional Accountants:

You recently started working with a firm of Chartered Accountants as a graduate. You have been assigned to work on an accounting job with a prestigious client who brings many other clients to your business.

Your supervisor Tom has asked you to "work a few extra hours on your own time to make sure that job comes in on budget. To keep the client happy, we have given them a special rate, so the job is not very profitable, and we don't want to hurt our reputation by going over budget. We should be able to accomplish our budget by coming in a half hour early, taking a shorter lunch, and working an hour or so after our normal finishing time. We will not record the extra time on our paysheets so that the client will not be charged."

You recall reading in the firm's policies and procedures that working hours and not charging for them on the time sheet is a violation of the firm's employment policy. You are also aware that supervisors are paid bonuses, instead of overtime when jobs come in on budget, whereas the staff are paid for overtime and not bonuses.

During lunch you raise the issue with a fellow staff member who informs you that "Tom does this on all his jobs. The partners think he is great as all his jobs come under budget and he is likely to be our firm's next office manager." He rewards his staff by giving them favourable performance reviews.

The partners of the firm are unaware of Tom's practices.

Required -

a) Identify any at risk ethical principles with justify with reference to facts of the senario.

b) Suggest all possible appropriate courses of action that you could take as an accounting professional.