Simeone is a certified practicing accountant for KF Ltd, which is a large listed company in New Zealand.

Simeone is a certified practicing accountant for KF Ltd, which is a large listed company in New Zealand. KF Ltd has several divisions operating both in NZ and Asia. One of Simeone’s roles is to review the expense claims of the senior management team who often spend many days away from home, and who also make large purchases using company credit cards when they are traveling. Simione is concerned that the chief operating officer (COO), who is also a director of the company, has submitted an expense claim that includes items that appear to be for personal use and therefore, are not genuine business expenses. The COO’s expense claim also has a list of supposed cash payments that do not appear to have been incurred. This is because there are no receipts or documents to substantiate the purchases, although cash withdrawals from the company credit cards have occurred. Simione is concerned that the cash payments related to facilitation payments made to overseas suppliers and customers. She is also concerned that the non-business-related purchases will lead to non-compliance with the organization’s taxation records. Simione raises her concerns with the CFO but is told to just process the claim and stop making a fuss.

Required: The American Accounting Association (AAA) model is quite often used as a tool to deal with cases portraying ethical dilemmas. It follows a seven-step procedure to evaluate and make case recommendations. From those seven steps, ONLY identify and discuss the steps that support a deontological perspective and teleological perspective.

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