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

Question

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?

e. You do not provide top management with the detailed job descriptions they requested because you fear they may use this information to cut a position in your department.

Step-by-Step Solution

Answer

The ethical standard violated, in this case, are credibility and integrity.

Definition of IMA

IMA standards for the Institute of Management Accountants is one of the top associations of professionals in the finance field.

Identification of violated ethical standards

The correct option is credibility and integrity standard.

In this case, failing to provide the top management of the company with a detailed description of the job information is a violation of the credibility standard.

If the reason for not providing the correct information to the management is to lose the position, then the standard of integrity is violated.