Q16-2SE-b - Horngren'S Financial And Managerial Accounting

Question

Identifying ethical standards 

The Institute of Management Accountants’ Statement of Ethical Professional Practice requires managerial accountants to meet standards regarding competence, confidentiality, integrity, and credibility. Consider the following situations. Which standard(s) is(are) violated in each situation?

b. You see others take home office supplies for personal use. As an intern, you do the same thing, assuming that this is a “perk.”

Step-by-Step Solution

Answer

The ethical standard violated, in this case, is integrity.

Definition of a perk

The perks are defined as an advantage or something extra in the form of money or some goods.

Identification of violated ethical standards

The correct option is integrity standards.

In this case, if the intern takes home office supplies for personal use, which means that the employee is stealing from the employer of the business.

Stealing from the employer is a violation of integrity standards.