Question

• Go to the American Institute of Certified Public Accountants (AICPA) website to read the current AICPA code of professional conduct, located at http://www.aicpa.org/Research/Standards/CodeofConduct/Pages/default.aspx. Next, assess the effectiveness of the current Institute of Management Accountants (IMA) code of professional conduct in promoting ethical behavior and providing guidance for the dilemmas managerial accountants are confronted with today. For the first part of this Week’s discussion, compare the IMA code of conduct to the AICPA code of professional conduct and assess the effectiveness of the two codes.
• Next, assess the aspects of your job that are most likely to be challenged ethically and suggest the approach(es) you will take to handle these situations.

Answer 1

Answer:

1.

• The IMA code of conduct provides managerial accountants with ethical standards that they are expected to follow.
• The code of conduct provides that managerial accountants should always keep in mind the welfare of those are affected by their actions and as such should always implement their moral judgments.
• The code of conduct requires the managerial accountants to maintain high level of ethics, do regulation and monitoring.
• The IMA code of conduct sets standards for competence, integrity, credibility and confidentiality.The AICPA code of professional conduct is meant for CPAs.
• The AICPA code sets standards for CPAs in the following areas-due care,objectivity,independence,and integrity.
• The Code also necessity that CPA professionals should link their moral judgment to their professional conduct.

2.

• I work as an accountant in a large automobile manufacturing firm and the aspect of my job that is most likely to be challenged ethically is the constant pressure from management on one hand and adhering to the standard operating procedures on the other hand.
• As an accountant it is my duty and responsibility to report the financial situation of the company in the truest manner.
• Many times there are pressures put on me by managers to alter the financial records of the company.
• I handle these situations by adhering to the ethical standards of my profession and ensuring that there is no misrepresentation or omission of financial records.