Question

For this discussion:

• Read the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct.
• Read and assess the current Institute of Management Accountants (IMA) Statement of Ethical Professional Practice, which promotes ethical behavior and provides guidance for the dilemmas managerial accountants are confronted with today.
• For the first part of this week’s discussion:
  • Compare the IMA Statement of Ethical Professional Practice to the AICPA Code of Professional Conduct and assess the effectiveness of the two codes.
• For the second part:
  • Assess the aspects of a managerial accountant's job that are most likely to be challenged ethically and suggest the approach(es) you will take to handle these situations.   

Answer 1

The IMA code of conduct provides ethical standards for managerial accountants. TheIMA ethical principles are based on honesty, fairness, objectivity and responsibility.The code promotes ethical behavior and provides guidance for the dilemmasmanagement accountants are confronted with today by using these ethical principleswhen engaging in accounting services for their company.

IMA members have to uphold the standards of -

I. COMPETENCE. II. CONFIDENTIALITY III.CREDIBILITY

The principles of AICPA Code of professional conduct are:

Responsibilities Principle, The Public Interest Principle, The Integrity Principle, Objectivity and Independence Principle, Due Care Principle, and the Scope and Nature of Services Principle.