Question

Discuss how the IMA Code of Ethics affects the ethical behavior of accountants. Which of the four standards found in the Code do you think is the most difficult to meet and why?

Note:Could you please don't use your handwriting to answer this question to be easy for me to solve...Thanks

Answer 1

IMA Statement of Ethical Professional Practice identifies and explains four standards that help define a members ethical responsibility.

1. Competence

2. Confidentiality

3. Integrity

4. Credibility.

1.Competence:

-Each member has the responsibility to maintain an appropriate level of professional expertise by continually developing knowledge and skills.

- Perform duties in accordance with relevant laws , regulations and technical standards.

- Provide Decision support information and recommendations that are accurate, clear, concise and timely.

- Recognize and communicate professional limitations and prevent it from happening.

2. Confidentiality:

-Keep information confidential except when disclosure is required legally or authorized.

- Inform all relevant parties regarding appropriate use of confidential information, Monitor Subordinates activities to ensure compliance

- Refrain from using confidential information for unethical advantage.

3. Integrity

-Mitigate actual conflict of interest . Regularly communicate with business associate to avoid apparent conflict of interest.

- Refrain from engaging in any conduct that would prejudice carrying out duties ethically.

- Abstain from engaging in or supporting any activity that might discredit the profession.

4. Credibility

- Communicate fairly and objectively .

- Disclose all relevant information that could reasonably be expected to influence an intended users understanding of the reports, analysis or recommendations.

- Disclose delays and deficiencies in information, timelessness , processing or internal controls in conformance with organisation policy or applicable law.

these are the 4 standards that affects ethical behavior of accountants.