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Merced Home Products-Accounting Ethics CaseWayne A ShakerOMGT 308-001.2014,SP, financial and Managerial AccountingInstructor Paul H. Robinson, JD, CPAMost profit making companies understand conducting course within an ethical inform framework is the straightlaced way to report quarterly results. Often accounting managers are given opportunities to exercise judgment in financial reporting, using their knowledge about the business to improve the effectiveness of financial statements. However, accounting professionals need to perform their job tasks in accordance with laws, regulations, and technical standards while supplying information that is accurate, clear, concise, and timely. At the resembling time, managers need to be free from pecuniary anxieties, and disclose all relevant information that could influence an intended recipients understanding of the analyses or reports. However, when managers have incentives to produce coercive results, profit management can occur whil e misleading those who review the companys financial statements.In the case of Merced Home Products Inc., recently hired controller Stacy Cummins has stumbled upon an accounting procedure causing her great concern. Being a new controller, Stacy reviewed the financial statements of the Home Security division discovering profits improved separately quarter until a year end climax with outstanding performance. According to the assistant controller, the standard costs had been modified by Vice President, Preston Lansing to take a hop positive earnings as the fiscal year progressed. Upon further investigation, Ms. Cummins discovered the president of the Merced Home Products was aware of the reporting using questionable standards and had chosen not to bother Pres... ...ose developed by the Institute of Management Accountants (Ima, n.d.). The guidelines for ethical behavior cover professional competence, confidentiality, personal integrity, for individuals disclosing financial info rmation. Of course, ethical behavior in reporting is critical to establish creditability to any company to infuluence growth and outside investment. In the end, ethical conduct of the individuals reporting results is essential for maintaining a solid reputation and confirm continued success. ReferencesBrewer, P. C., & Garrison, R. H. (2013). Introduction to managerial accounting (6th ed.). New York McGraw-Hill/Irwin.Federal Securities Laws. (2002). Retrieved April 29, 2014, from https//www.sec.gov/about/laws.shtmlsox2002 Ima. (n.d.). Retrieved April 29, 2014, from http//www.imanet.org/resources_and_publications/EthicsCenter.aspx