Question

1, The Institute of Management Accountants' Statement of Ethical Professional Practice specifically states, among other things, that management accountants have a responsibility to keep information confidential except when disclosure is authorized or legally required.

True or False

2, In applying the Standards of Ethical Professional Practice, you may encounter problems identifying unethical behavior or resolving an ethical conflict. When faced with ethical issues, you should follow your organization's established policies onthe resolution of such conflict.

True or False

3, A written policy on ethical conduct is not necessary. A firm without an established policy toward ethical conduct is just as likely to be able to resolve ethical issues as one that does have a written policy.

True or False

Answer 1

The Institute of Management Accountants' Statement of Ethical Professional Practice specifically states, among other things, that management accountants have a responsibility to keep information confidential except when disclosure is authorized or legally required.

The answer is True.

The IMA (Institute of management Accountant ) has set forth four ethical business standard for business problems. One of the standard in ethical business conduct is confidentiality. You should keep up the information confidentially except when information is needed to be disclosed legally or when it is authorised to disclose to relevant parties.

2. In applying the Standards of Ethical Professional Practice, you may encounter problems identifying unethical behavior or resolving an ethical conflict. When faced with ethical issues, you should follow your organization's established policies onthe resolution of such conflict.

The answer is True

Yes. When you encounter problem towards ethical behaviour, we should follow our organisation policies on the resolution of such confict. If the management policies do not resolve conflict, we can take further action such as consulting with the immediate supervisor when he is not involved or submitting the report to a committees. But as a first step, you should follow the organisation policy for solving the ethical issues.

3.A written policy on ethical conduct is not necessary. A firm without an established policy toward ethical conduct is just as likely to be able to resolve ethical issues as one that does have a written policy.

The answer is False

It is the ethical policy of the Company that serves as a guide to proper business conduct for solving problems in different business situations. In the ever changing environment, a quick response is needed under pressure. But a written policy can be used as a guide for resolving conflict in the future. A firm can not solve the problem towards the ethical conduct as a firm that keeps a written ethical policy.