Question

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 Jane Timonthy, a management accountant in a large public corporation, notices a major conflict of interest in her company. She immediately sends an email to all officers of the corporation with a copy to the Board of Directors to notify them of the details of the conflict of interest. Her email was very polite and looked

 professional. Given this context, which one of the following in most likely true?

 The management accountant was being ethical and behaved in a manner that is consistent with professional guidelines.

 The management accountant was being ethical but violated the competence guideline for management accountants.

 The management accountant was being ethical, adhered to professional conduct guidelines for management accountants, but showed poor judgment.

 The management accountant violated the IMA's code of professional ethics.

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 What is the name of the organization that establishes global ethics standards for professional accountants?

 International Federation of Accountants (IFAC)

 International Ethics Standards Board for Accountants (IESBA)

 Public Interest Accounting Oversight Board (PCAOB)

 International Auditing and Assurance Standards Board (IAASB)

Answer 1

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Explanation for incorrect options:

Option A: Though she behaved ethically and as per professional guideline, she she showed poor judgement, thus this sentence is not company and not most likely to be true

Option B: She did not violated the guidance as she reported the issue as and when she noticed instead of avoiding it.

Option D: By appropriately noticing the board and other officials she did not violate the code, instead followed it.

Explanation for correct options:

Option C: There was a poor judgement by Jane because she mailed the issue to all the officers, even to the one which were not related to the issue and could do nothing about it. Instead, Jane should have discussed the matter with ethics committee of board or ethical officer. There was a poor judgement from Jane's behalf even though she was ethical and adhered to professional guidance.

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Explanation for incorrect options:

Option A: IFAC is for development of accounting professions advocacy, development, and support for member organizations like ACCA.

Option C: PCAOB is to protect the investors by overseeing the audits of public entities,issuers and broakers.

Option D: IAASB role is to establish the standards for audit and assurance

Explanation for correct options:

Option B: it is the duty of IESBA to issue standards which can be adhered by professional accountants through out the world for ethical issues.

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