Standards of Ethical Conduct for Management

Standards of Ethical
Conduct for Management
Accountants
Appendix B
Management accountants have an obligation to the
organizations they serve, their profession, the public, and themselves to maintain
the highest standards of ethical conduct. In recognition of this obligation, the
Institute of Management Accountants has published and promoted the following
standards of ethical conduct for management accountants.
APPENDIX PREVIEW
B-1
IMA Statement of Ethical Professional Practice
Members of IMA shall behave ethically. A commitment to ethical professional
practice includes: overarching principles that express our values, and standards
that guide our conduct.
Principles
IMA’s overarching ethical principles include: Honesty, Fairness, Objectivity, and
Responsibility. Members shall act in accordance with these principles and shall
encourage others within their organizations to adhere to them.
Standards
A member’s failure to comply with the following standards may result in disciplinary action.
I. COMPETENCE
Each member has a responsibility to:
1. Maintain an appropriate level of professional expertise by continually developing knowledge and skills.
2. Perform professional duties in accordance with relevant laws, regulations,
and technical standards.
3. Provide decision support information and recommendations that are accurate,
clear, concise, and timely.
4. Recognize and communicate professional limitations or other constraints that
would preclude responsible judgment or successful performance of an activity.
II. CONFIDENTIALITY
Each member has a responsibility to:
1. Keep information conf dential except when disclosure is authorized or legally
required.
2. Inform all relevant parties regarding appropriate use of confdential information. Monitor subordinates’ activities to ensure compliance.
3. Refrain from using conf dential information for unethical or illegal advantage.
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2014). Managerial accounting : Tools for business decision making, 7th edition. Retrieved from http://ebookcentral.proquest.com
Created from ballarat on 2020-04-23 19:19:51.
Copyright © 2014. Wiley. All rights reserved.
B-2 Appendix B Standards of Ethical Conduct for Management Accountants
III. INTEGRITY
Each member has a responsibility to:
1. Mitigate actual confl icts of interest, regularly communicate with business
associates to avoid apparent conflicts of interest. Advise all parties of any
potential conflicts.
2. Refrain from engaging in any conduct that would prejudice carrying out
duties ethically.
3. Abstain from engaging in or supporting any activity that might discredit the
profession.
IV. CREDIBILITY
Each member has a responsibility to:
1. Communicate information fairly and objectively.
2. Disclose all relevant information that could reasonably be expected to influence an intended user’s understanding of the reports, analyses, or recommendations.
3. Disclose delays or def ciencies in information, timeliness, processing, or internal
controls in conformance with organization policy and/or applicable law.
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, you should follow your organization’s established policies on the resolution of such conflict. If these policies do not resolve the ethical
confl ict, you should consider the following courses of action:
1. Discuss the issue with your immediate supervisor except when it appears that
the supervisor is involved. In that case, present the issue to the next level. If
you cannot achieve a satisfactory resolution, submit the issue to the next management level. If your immediate superior is the chief executive offcer or
equivalent, the acceptable reviewing authority may be a group such as the
audit committee, executive committee, board of directors, board of trustees,
or owners. Contact with levels above the immediate superior should be initiated only with your superior’s knowledge, assuming he or she is not involved.
Communication of such problems to authorities or individuals not employed
or engaged by the organization is not considered appropriate, unless you
believe there is a clear violation of the law.
2. Clarify relevant ethical issues by initiating a conf dential discussion with an
IMA Ethics Counselor or other impartial advisor to obtain a better understanding of possible courses of action.
3. Consult your own attorney as to legal obligations and rights concerning the
ethical conflict.
Source: Institute of Management Accountants. Reprinted by permission. Go to www.imanet.org/
about_ima/our_mission.aspx to learn more about the IMA’s commitment to ethical professional
practices and its available resources, including an Ethics Helpline.
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2014). Managerial accounting : Tools for business decision making, 7th edition. Retrieved from http://ebookcentral.proquest.com
Created from ballarat on 2020-04-23 19:20:35.
Copyright © 2014. Wiley. All rights reserved.

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