Question 6
ICAN
•
2021
•
CORPORATE STRATEGIC MANAGEMENT AND ETHICS
•
mixed
Case Stimulus
Mr John, a professional accountant, is the Chief Executive Officer of a company quoted on the Nigerian Stock Exchange. He also owns about 20% of the company’s shares worth hundreds of millions of Naira. But due to a number of factors, the company started performing poorly to such an extent that the unpublished financial report just forwarded to him shows that a huge loss will be declared by the company. In anticipation of a slide in the price of the company’s shares, Mr John instructed his stockbroker to help him sell half of his share in the company for possible repurchase when the price eventually falls after the financial statements are published. He made substantial amount of money from this transaction.
Requirements
(
a
)
Analyse the action of Mr. John using: The Model Code.
(
a
)
Moral development of accountants.
(
b
)
Advise Mr. John on the fundamental ethical principles which professional accountants are expected to comply with.
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About This Question
This is
Ican
2021
Corporate Strategic Management And Ethics
Question 6.
It is one of the
mixed
questions from the
2021
Ican
Corporate Strategic Management And Ethics
examination.