Recently, there has been an inquiry into whether robotic surgical procedures provide any net benefits to patients based on the costs. The Seattle Times on July 7, 2012 originally published an article, “Use of surgical robots booming despite hefty cost,”
http://seattletimes.com/html/localnews/2018631542_robot08m.html. Recently, CNBC posted a series dated from April 18, 2013, http://www.cnbc.com/id/100650872
The IMA Code of Ethics describes the ethical framework in which management accountants should operate. More often than not, decision makers ask management accounts to perform analysis based on certain facts and predictions. These analysis are turned in to potential models that are reviewed in order to make final decisions. In a hypothetical situation, you have performed all the financial analysis and learned that the net present value of performing robotic surgical procedures exceed 15%. After reviewing your report, you become knowledgeable of information concerning a figure that was not part of the original calculations… Risk management has determined that the cost of lawsuits due to complications and potential loss of life associated with robotic procedures will reduce profitability to 3%. Management has decided to perform robotic procedures.
So, what do you do? This question should be answered an in essay format with a clear beginning, middle and end. You should use transitions between paragraphs and be readable to a knowledgeable business person. This means you will need to discuss the IMA Code of Ethics and how it applies to this situation. The focus of this question is the usage (or lack thereof) of the new report.
For more information on Code of Ethics read this: https://en.wikipedia.org/wiki/Ethical_code
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