Lauren Smith is the controller for Sports Central, a chain of sporting goods sto

Question

Lauren Smith is the controller for Sports Central, a chain of sporting goods stores. She has been asked to recommend a site for a new store. Lauren has an uncle who owns a shopping plaza in the area of town where the new store is to be located, so she decides to contact her uncle about leasing space in his plaza. Lauren also contacted several other shopping plazas and malls, but her uncle's store turned out to be the most economical place to lease. Therefore, Lauren recommended locating the new store in her uncle's shopping plaza. In making her recommendation to management, she did not disclose that her uncle owns the shopping plaza.

Discuss whether or not the accountant acted ethically

Explanation / Answer

In given Case, Lauren smith as accountant of sporting goods stores has been asked to recommend a site to open a new store dor the same Lauren has asked the first quotation from her Uncle who own a shopping plaza in that area and also contacted other shopping plaza and arranging the data from all the plaza she found that the Most economical place to lease is her uncle shopping plaza and same was recommended to management but she did not tell the ,management that the plaza owns by her uncle that ok because the method followed by her self is well enough for her to stand on her recommendation and she choose the most economical place from the various quotations arrive to her and fortunately the lowest price is from his uncle.

So on the basis of above factors accountant acted ethically.

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.