Scribd
Upload
302 views

ACCCOB2-Ethics Reflection Paper PDF

The document summarizes an ethical dilemma faced by a company controller. The controller must decide whether to remain silent about a media release by the vice president of finance that contains financial information and analysis that has not been properly verified or approved. There are ethical issues around truth versus loyalty to management. Key stakeholders like investors could be negatively impacted if misleading information is released. The controller should not remain silent as it is their responsibility to ensure only accurate and verified information is released in order to protect the integrity of the company and its reputation.

Uploaded by

Angela Michelle Francheska Engbino
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
302 views

ACCCOB2-Ethics Reflection Paper PDF

The document summarizes an ethical dilemma faced by a company controller. The controller must decide whether to remain silent about a media release by the vice president of finance that contains financial information and analysis that has not been properly verified or approved. There are ethical issues around truth versus loyalty to management. Key stakeholders like investors could be negatively impacted if misleading information is released. The controller should not remain silent as it is their responsibility to ensure only accurate and verified information is released in order to protect the integrity of the company and its reputation.

Uploaded by

Angela Michelle Francheska Engbino
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

ACCCOB2 GROUP REFLECTION PAPER

ON ETHICS IN FINANCIAL REPORTING

A Group Reflection Paper


Presented to the
Accountancy Department
De La Salle University

In partial fulfillment
of the course requirements
in ACCCOB2

SUBMITTED BY:
Engbino, Angela Michelle Francheska
Flores, Reyne Thrisha J.
Venida, Josue Marie N.
K34A

December 15, 2022


Summary of the situation (explain the operational terms in layman’s term)
The company,

What if any, is the ethical dilemma in the situation?


The ethical dilemma in the case above is a conflict between truth and loyalty. The
controller is faced with a decision where she has to choose between the truth against her loyalty
to the company’s vice president of finance. One could even argue that this decision may cost
the controller her job because choosing the truth may be going against the vice president of
finance’s wishes which may consequently lead to the controller’s termination. However this
decision would protect the company’s reputation and would keep the company running for many
years. Although the decision to choose to her loyalty to the company would have long term
consequences as it would cost the company’s reputation which could in turn bankrupt the
company. With that said, another dilemma which in this case is a matter between short-term and
long-term consequences.

Should the controller remain silent? State your reasons


The controller should not remain silent for the following reasons:
1. As a member and officer of the company, it is her responsibility to protect the
integrity of the company by releasing information that is according to the
Philippine Accounting Standards. Thus, it is her responsibility to be vocal about
not releasing company information or analysis that is inaccurate and not factual.
2. As a member of the compay, it is important to observe proper procedures. Thus,
it is the controller’s responsibility to ensure that the company’s board of directors
or officers have approved of the media statement that the vice president plans to
release.

What stakeholders might be affected by the media release?


The stakeholder that might be affected by the media release would be the investors,
especially those who would invest due to the information that the company would release. Given
that the growth of the company was not attributable to the company’s operations, this would not
mean that the investor would profit from investing in the company. Additionally, it wouldn’t also
mean that the company would be free from bankruptcy or closing. If the company were to
release such information, investors would most likely suffer losses as the government might
impose penalties or even legally charge them for publishing information that is misleading.
Another stakeholder that would be affected by the press release would be the
management, specifically their integrity. This is because the company would be releasing an
interpretation or analysis that has not been thoroughly verified by an auditor or third party. Once
an independent party verifies that such a press release is not accurate or factual, possible
suppliers, investors, management, and even employees may be less interested in working with
a company that did not exercise due diligence prior to releasing or publishing information to the
public. Therefore, the company’s integrity and reputation may be compromised and in today’s
time, it is a vital factor in customer purchasing decisions.

Give your opinion on the following statement and cite reasons:


“Because Cruz, the vice president is most directly responsible for the media release,
Santos has no real responsibility in this matter.”
The statement “Because Cruz, the vice president, is most directly responsible for the
media release, Santos has no real responsibility in this matter,” is untrue because even though
Ms. Cruz is the one delivering the statement to the people. She is doing it in her capacity as vice
president of finance and as a representative of the company. Therefore, it is presumed that
those in her department and her fellow executive members have taken the necessary measures
to thoroughly verify and analyze the information before releasing it to the public. Another point to
consider is that once an officer of a company releases a statement to the public, there is a
presumption that it was approved by the board and verified by its members. Thus, Ms. Santos
has a responsibility in this matter as it is her duty to verify the information.

You might also like