Ethics case Essay Example | Topics and Well Written Essays - 1000 words - 1

Ethics case - Essay Example dy of a lady named Lisa Michaels who is a Certified Public Accountant (CPA) and presently works with Home and Personal Care Products as Finance Manager. She is an experienced and dutiful employee with a very good reputation for honesty and depth of analysis skills. In this case, Lisa faces the challenge of identifying loopholes in the financial matters between her own company Home and Personal Care Products and a company it acquired named Prestige Fragrance Company. Lisa has concerns over evaluation of the assets of the acquired company and Mr. Anderson, who is also a CPA and Controller of the merger on behalf of Prestige Fragrance Company has not managed to address Lisa’s concerns satisfactorily. Lisa thinks that the costs have been capitalized by Prestige Fragrance Company whereas they should principally be not. The ethical challenge for Lisa is to find answers to her queries without tarnishing the relationship between the parent company and the acquired company. Key stakeholders in the case include everybody working in and associated with both companies i.e. Home and Personal Care Products, and Prestige Fragrance Company in general, and the controllers of financial operations of the two companies i.e. Lisa and Mr. Anderson in particular. Lisa might lose her job if her claims are based on weak foundations and if she cannot find proof in support of her accusations that she has not yet openly made. Mr. Anderson, on the other hand, who is also a CPA and is respected a lot by the Board of Directors, risks losing his job as well as image if he is found guilty of capitalization of costs or presentation of liabilities as assets to Home and Personal Care Products. Stakeholders also include the people and companies that have purchased shares of the two companies because any profit or loss made by any of the two companies has a direct impact on the value of their shares. In order to maximize the likelihood of a successful merger, it is imperative that both companies