Answer
See explanation
Work Step by Step
1. Perlman's failure to disclose the obsoleteness of part of the inventory would be tantamount to unethical practice. If she had turned a blind eye to the obsolete inventory, she would have violated her integrity. Her act of concealing the fact that some inventory is out of date will undermine the entire accounting profession.
2. Perlman would easily uphold ethics by disclosing details concerning how part of the inventory is outdated because it is required according to the standards of professional practice endorsed by IMA. Upholding ethics should not be difficult for Perlman because it is what is expected of her by the ethics which govern the management accounting profession. Perlman should consider pursuing three options to solve the ethical conflict. The first option entails informing the supervisor about the obsolete inventory. The second option entails confidential discussions with a qualified and objective IMA counsellor. The third option entails consulting an attorney regarding the issue and the legal liabilities that may ensue.
