Reference no: EM132515264

Loren is a cost accountant at a large manufacturing company. She has been asked by her manager to update the cost for the company's lowest selling product, which is made at the plant where Loren works. He wants Loren to complete the task in one day, and does not want Loren to collect much information, because he does not anyone to know what Loren is doing. Loren believes the President of the company will use her numbers to justify closing the plant, which will cause Loren and some of her closest colleagues to lose their jobs. Loren is worried that she cannot provide accurate numbers in such a short time with such limited resources, but her manager is putting a lot of pressure on her to complete the work quickly. Loren is so frustrated with the request that her boss has made that she complains to her co-worker, Charlie, about the situation. Charlie advises Loren to report the cost of the product lower than it actually is so the plant will not be closed. He goes on to explain that if her boss finds out the cost is not accurate that she can blame the inaccuracy on the short time and limited resources that she was given to complete the task.

In an essay of at least five paragraphs, answer the following questions:

Question 1: Is Charlie's advice a violation of the IMA Standards of Ethics? Did Loren violate any of those standards herself? What should Loren do