Question - Which of the following is a standard of ethical conduct for managerial accountants as per the Institute of Management Accountants?

Answered by: Kenneth Johnson  |  Category: General  |  Last Updated: 22-06-2022  |  Views: 1424  |  Total Questions: 14

Four standards of ethical conduct in management accountants' professional activities were developed by the Institute of Management Accountants. The four standards are competence, confidentiality, integrity, and credibility. Standards. The IMA notes the following ethical standards in managerial accounting: competence, confidentiality, integrity and credibility. Confidentiality requires accountants to disclose information only at their supervisor's discretion. Integrity prohibits managerial accountants from engaging in unethical conduct. Accountants working in public accounting firms have an ethical obligation to perform their work with due diligence, and to only document and record work that has actually been completed. Accountants should recall that this practice is tantamount to falsifying records and is ethically questionable, at best. Integrity Mitigate actual conflicts of interest; regularly communicate with business associates to avoid apparent conflicts of interest. Advise all parties of any potential conflicts. Refrain from engaging in any conduct that would prejudice carrying out duties ethically. The four specific standards contained in Statement on Management Accounting 1C (Revised), IMA's Statement of Ethical Professional Practice, are competence, confidentiality, objectivity, and credibility. When faced with an ethical issue, a member should always discuss the issue with his or her immediate superior.

Service companies, such as transportation, business, professional, restaurants and maintenance services, use managerial accounting to calculate certain business functions costs. These companies determine how much labor is used and the amount of materials used.

3. Members of IMA shall behave ethically. A commitment to ethical professional practice includes overarching principles that express our values and standards that guide member conduct. Principles. IMA's overarching ethical principles include: Honesty, Fairness, Objectivity, and Responsibility.

Which of the following is an objective of managerial accounting? - Providing information for decision making and planning. - Assisting managers in directing and controlling operational activities. - Measuring the performance of activities within an organization.

Objectivity and independence are important ethical values in the accounting profession. Accountants must remain free from conflicts of interest and other questionable business relationships when conducting accounting services. Objectivity and independence are also important ethical values for auditors.

The IMA Statement of Ethical Professional Practice contains four main standards : (1) competence, (2) confidentiality, (3) integrity, and (4) credibility (see Exhibit 1. 10).

Managerial accounting is more concerned with operational reports, which are only distributed within a company. Financial accounting must comply with various accounting standards, whereas managerial accounting does not have to comply with any standards when information is compiled for internal consumption.

The Financial Accounting Standards Board (FASB) is an independent nonprofit organization that is responsible for establishing accounting and financial reporting standards for companies and nonprofit organizations in the United States, following generally accepted accounting principles (GAAP).

Items that are not period costs are: Costs included in prepaid expenses, such as prepaid rent. Costs included in inventory, such as direct labor, direct materials, and manufacturing overhead. Costs included in fixed assets, such as purchased assets and capitalized interest.

The fundamental principles within the Code – integrity, objectivity, professional competence and due care, confidentiality and professional behavior – establish the standard of behavior expected of a professional accountant (PA) and it reflects the profession's recognition of its public interest responsibility.

What are the five codes of ethics? Integrity. Objectivity. Professional competence. Confidentiality. Professional behavior.

Accountant General Job Duties: Summarizes current financial status by collecting information; preparing balance sheet, profit and loss statement, and other reports. Substantiates financial transactions by auditing documents. Maintains accounting controls by preparing and recommending policies and procedures.

Ethical Issues in Accounting: 4 Pieces of Advice. The ethical dilemmas that accountants sometimes face include conflicts of interest, payroll confidentiality, illegal or fraudulent activities, pressure from management to inflate earnings, and clients who request manipulation of financial statements.

Ethical codes are the fundamental principles that accounting professionals choose to abide by to enhance their profession, maintain public trust, and demonstrate honesty and fairness. Purpose Independence and Objectivity. Integrity. Confidentiality. Professional Competence. Professional Behavior.