Question

compare the IMA code of conduct to the AICPA code of professional conduct and assess the effectiveness of the two codes

Answer 1

The Institute of Management Accountants (IMA) overarching ethical principles include: Honesty, Fairness, Objectivity, and Responsibility. Members shall act in accordance with these principles and shall encourage others within their organizations to adhere to them. IMA members have a responsibility to comply with and uphold the standards of Competence, Confidentiality, Integrity, and Credibility. Failure to comply may result in disciplinary action.

IMA provides guidance to managerial accountants regarding following ethical standards. Management accountants shouldn’t commit acts in violation or condone by others within their organizations. Ethics are basically the difference between doing what is right and what is wrong. An accountant must be skilled at implementing moral judgments so that he or she can consider the welfare of those affected by his or her actions. Accountants are responsible for enhancing the qualification of higher standards, maintaining a high level of ethics, monitoring, conducting, and regulating, as well as protecting the public from unethical behavior. The profession’s leadership must act to preserve a legacy of honor and integrity for future generations of accountants.

The American Institution of CPAs (AICPA) set standards for CPAs in the following areas: Responsibility, The Public Interest, Integrity, Objectivity and Independence, Due Care, Scope and Nature of Services. The AICPA Code of Professional Conduct consists of two sections; one section is dedicated to the principles, and another section is formulated for the rules. The interpretation of these rules results in ethical guidelines, which govern the specific activities and other similar behavior of professionals. The purpose of the AICPA Code is to provide guidance and rules to all the members for the performance of their professional duties.

As per the code, accountants have an ethical responsibility towards public, clients, and colleagues, although, the responsibility towards the public is of paramount importance. The accountant's first responsibility is towards the public that is entitled to view the company's financial statements, and this responsibility overrides his/her obligation towards clients. The AICPA Code of Conduct is based on six principles; (1) responsibilities (2) serve the public interest (3) integrity (4) objectivity and independence (5) due care and (6) scope and nature of services. These principles are required practices for all certified public accountants who are members of the AICPA

The American Institute of Certified Public Accountants (AICPA) as well as the Institute of Management Accountants (IMA) sets professional code of conduct for accountants. Both the organizations emphasize that code of ethics should be strictly adhered by the accountants while performing their duties. They both have written code of ethics which each member is required to follow.

Both the AICPA and the IMA emphasize on maintaining integrity in their ethical conduct which means that accountants should be honest with their clients in all the situations and circumstances. They should keep their information confidential. Also, according to both the organizations an accountant must.