You have been hired as a graduate accountant by K2Business Advisory (K2BA). K2BA is a small consultancy firm based in Singapore, with clients in the South East Asia region

You have been hired as a graduate accountant by K2Business Advisory (K2BA). K2BA is a small consultancy firm based in Singapore, with clients in the South East Asia region. You have been tasked with producing a report according to the IMA Statement of Ethical Professional Practice for the managing partner that addresses the following issues:

Issue 1

Wisma Sharkskin Ltd, a manufacturer of wet suits based in Indonesia is trying to determine whether to develop a Code of Ethics for itself. They have requested for an explanation of the concept of professional and business ethics. They would also like to know what to include in the Code, should they decide to have one.

Issue 2

Qing Long Heavy Industries Ltd is a manufacturer of steel products for the building and construction industry in Malaysia. Recently, they have been in a bit of a strife due to cash flow issues. In order to ease the cash flow issue, one of the managers within the company has suggested that instead of following the required quarterly maintenance schedules for their machineries, they should instead carry out maintenance annually. The argument put forth was that since business was slow and since they have not been utilising all the machines to their capacity, then there was no need to carry out maintenance so frequently.

Issue3

Blue Cow Marketing Ltd, an advertising firm based in Thailand has a joint venture agreement with Original Art Ltd, an advertising firm based in Singapore.Under the terms of the joint venture agreement, each company has to make regular returns of financial performance to the other. According to the financial controller of Blue Cow, Original Art has always been late in making its returns,which are usually incomplete and contain many errors. The accounting staffin Blue Coware very reluctant to co-operate with Original Art’s accounting staff and the working relationship between the two companies is poor.Blue Cow’s financial controller has been involved in a review of the joint venture with Original Art. Due to the many problems that Original Arthas caused him and his staff,he has advised discontinuing the joint venture, even though the joint venture has been profitable for both firms.

REQUIRED:

Your report must address all three issues as stated above and must use the IMA Statement of Ethical Professional Practice as the basis of your discussion. Your report is to be no more than 10-pages.