It is Jackson Daniel’s ethical responsibility to report any errors to management. All parties involved have a legal right to be informed that the previously presented budget is faulty and needs to be adjusted to prevent investment in an unprofitable project. As an employee who made errors in the projections, it is ethically important for Jackson to report these errors to management. This will protect investors from investing in a project based on an inaccurate budget.
By reporting the error to management, the employee not only protects the entity as a whole, but also saves management from potential lawsuits by creditors. Upholding integrity and considering the well-being of the organization are significant ethical obligations for employees, regardless of the circumstances.
If I were the employee, there would be no reason why I should not report my errors to management because legally and ethically, my profession encourages honesty, trustworthiness, credibility, and competence in executing my duties. Therefore, it is expected of Daniel to act in accordance with the moral rule that requires honesty by telling the truth and disclosing all his projections to management. As a CPA, it is Daniel’s responsibility to adhere to the CPA code of professional conduct. Ethically, his integrity should be the most important guide for whatever decision he has to make.
When confronted with his current predicament, Daniels, in his role as a CAM, is obligated to use his integrity, competence, and credibility to make decisions. According to the IMAM competence standard, he must comply with laws, regulations, and technical standards like GAP reporting. Additionally, he must guarantee the credibility of the projections he presents. Furthermore, the integrity standard demands that Daniels notify management of any errors in his submissions.
In conclusion, it is crucial for Jackson Daniels to inform management about his errors in order to prevent losses in the entity’s investment. He should be aware that the justice principle requires him to provide fair projections, and failing to make the necessary provisions violates the rights of investors. Additionally, the virtue of integrity compels him to resist any temptation to remain silent and instead confess his mistakes, even if it risks his job. It is his responsibility to prioritize the public’s interests above all other concerns.
