Question

Titian is a management accountant specialised in the financial services industry, where he has worked for the 20 years of his career. All his work has been focussed on financial services and, as he was always extremely busy, he did not complete any continuing professional development in the last 10 years.

Despite his lack of experience in other industries, Titian has applied for pro bono work preparing a report reviewing the effectiveness of a textile mill from the textile industry. When applying for this pro bono work, he did not disclose his lack of experience in the textile industry. Titian took the pro bono work because he needed some volunteer work in his curriculum vitae (CV) for applying for a promotion in his current job.

Required

1. State two of the ethical standards, as provided by the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice, which are being jeopardized and justify why these two standards are being jeopardized.

2. Explain how applying for the pro bono work could be done without jeopardizing these two ethical standards.

Answer 1

a) Two ethical standards, which are being jeopardized are-

1. Credibility. According to this standard, Communication must be fair and provide all relevant information. Here Titian is not disclosing his lack of experience in the textile industry while applying for this pro bono work. It means that he is jeopardizing the standard of credibility.

2. Competence. To enhance knowledge and skills, perform professional duties in accordance with relevant laws and regulations, are emphasized in this standard. Titian did not complete any continuing professional development in the last 10 years as well as lacking experience in other industries when applying for this pro bono work. It means that he is not competent enough to work in pro bono.

b) Titian can apply by following ways, without jeopardizing of said ethical standards-

1. Disclosure of deficiencies or lack of experience in other industries should be properly disclosed with reasons that will protect from jeopardizing with respect to Credibility. Here he can include his interest and the role in pro bono. He can mention the main experience or qualification which makes him a good fit for a potential job in pro bono.

2. To protect from jeopardizing with respect to Competence, Titian should highlight his experience for the 20 years of his career, qualifications, and skills, to prove him better than any other candidate. He should state to be good in a way that aligns with the pro-Bono’s goals and mission. Due to connecting with financial matters, he can help as an excellent candidate in his position at pro bono.

Thanks & all the best,.....