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

Solution:

1) The statement is TRUE

According to Institute of Management Accountant’s statement of ethical professional practice, management accounts should follow four standards:

(i) Competence

(ii) Confidentiality

(iii) Integrity

(iv) Credibility

The confidentiality standard says that management account should keep the information confidential except when disclosure is authorized or legally required.

Hence, in the context of above standard, the statement is TRUE.

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 on the resolution of such conflict.

Resolution of Ethical Conflict

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,

First --- you should follow your organization's established policies on the resolution of such conflict.

Second -- If these policies do not resolve the ethical conflict, the following course of action should be considered:

---- Discuss the issue with your immediate supervisor except when it appears that the supervisor is involved.

---- Clarity relevant ethical issues with an IMA Ethics Counselor

---- Consult with own attorney as to legal obligations and rights

In the above context, the statement is seems TRUE.

However it may be false since if these policies do not resolve the ethical conflict then the other course of action may be considered to resolve these ethical conflict.

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