Ethical issues facing Goodman:

Integrity:
Goodman could be honest and straightforward with the line manager and the president of the company about the short time and limited resources to do a very robust work capable of meeting the big business decision it is intended to be used for. Can Goodman realistically produce a costing information with the time and resources available, without compromising the standard of his work?

Objectivity:
Goodman could maintain an unbiased stance throughout the assignment given him, in view of his close relationship with other colleagues in the company. Goodman must not allow conflict of interest, bias, and undue influence or pressure to influence his professional judgement. For example, his line manager is putting him under a lot of pressure to complete the work pretty much quickly.

Professional competence and due care:
The company may be restructuring, and the president needs to have the most up-to-date and complete financial information to inform any big business decisions. As a professional accountant, Goodman must ensure that any financial information he provides is robust. Can Goodman realistically produce a costing information, with the time and resources available, without compromising the standard of his work?

Confidentiality:
Given the sensitivity of the situation, Goodman should maintain discretion and not share his concerns with other staff, who may not be aware of the president’s intentions. Is there anyone else in the company with whom Goodman can raise his concerns? Is there a senior finance officer who could advise Goodman, or another member of the board with whom Goodman can discuss his dilemma?

Possible courses of action:
Goodman should communicate the limitations of his work to his line manager and the president. As a professional accountant, Goodman has a duty to make his line manager and other users of the information aware of the limitations in the scope of his work.

Goodman should attempt to obtain certainty regarding the use of the information from his line manager and the president of the company. He should arrange a meeting with his line manager and explain that he is unwilling to do the work to the deadline requested, with the resources available, because the work could not be relied upon. The process of clarifying the intended use of the information and expressing his concerns regarding its reliability is likely to enhance his credibility.

Goodman could ask for more time to complete the work to the required standard, or ask for the work to be outsourced altogether. This would have the added benefit of enhanced objectivity.

Goodman could suggest that his head of department discuss the issue with the president or other members of the board, as appropriate. If his head of department is unsympathetic to his concerns, he should not allow himself to be associated with information that may be misleading.

If, after exploring all these routes of communication, Goodman still finds himself under unreasonable time pressure, he may have to make clear his refusal to conduct the work, and possibly resign from the company.

Goodman should document, in detail, the steps that he has taken in resolving his dilemma, in case his ethical judgment is challenged in future periods.

(4 ethical issues well explained @ 1.5 marks each = 6 marks)