1. Marcia Miller, as division controller, has an ethical responsibility to the proposal by division manager Tom Maloney. Since Miller is responsible for the integrity of the financial information provided to internal and external parties, she needs to ensure she follows all guidelines pertaining to accounting standards. Primarily, she needs to demonstrate objectivity, which consists of “disclosing fully all relevant information that could reasonably be expected to influence an intended user’s understanding of the reports” as outlined in IMA’s Standards of Ethical Conduct for Management Accountants. Miller could objectively assume that the sales orders that have been made but pending shipment have the potential of being cancelled or returned due to customer dissatisfaction, thus not reflect accurate divisional sales numbers.
2. Miller should not book the sales. Tough legislation has recently been passed which regulates the monitoring of managers and accountants, and she would put her company at risk by doing so. She should take steps that would help her in this situation of an unethical practice, such as consulting with an immediate supervisor or an Ethics department within the company.

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1. Michaels does indeed face an ethical problem with the Horizon group conference. One of the major standards of IMA’s Standards of Ethical Conduct for Management Accountants is integrity. The language used to explain this standard is to “avoid apparent conflicts of interest” and “refuse any gift, favor, or hospitality that would influence or would appear to influence your actions”. This would apply precisely to Michael’s situation. An all-expenses-paid package with lots of “rest and recreation time” sounds like a conflict of interest. Also, since he has family in the Cancun area that he said he planned on visiting, this too would appear to be an abuse of resources which