ACT580 – Capstone: Accounting Colorado State University - Module 3 CT Option 1 - Option #1 Don’t Leave Your Hand in the Cookie Jar.

ACT580 – Capstone: Accounting Colorado State University - Option #1 Don’t Leave Your Hand in the Cookie Jar Difference of Opinion between Karl Schumaker and John Davies This memo provides an unbi ased opinion and recommendation based on governing rules and regulations with regards to Karl’s and John’s ethical dilemma. Further, this memo discusses the steps that John should take to resolve the ethical dilemma he is facing. Also, the memo provides my opinion on whether Karl’s or John’s arguments are more persuasive. This memo provides calculations of the difference in Karl’s and John’s adjustments for bad debt, product returns, and warranties. Finally, I have provided an opinion as to whether I feel the differences are material on an individual basis and whether I feel the differences combined are material. How can John use the IMA Standards of Ethical Professional Practice to evaluate his own ethical behavior? According to the Institute of Management Accountants (IMA) (2017), the IMA Standards of Ethical Professional Practice “is committed to advocating the highest standards of ethical business practices – both for its members and the profession at large.” In addition, the IMA Standards urge members “to take an active role in ensuring their organization has a strong, open, and positive ethical culture” (IMA, 2017). With that being said, John could use the IMA Standards of Ethical Professional Practice to evaluate his own ethical behavior by asking himself if he is creating a strong, open, and positive ethical culture. Specifically, is John being strong enough in his conversation with Karl?