The Institute of Management Accountants, like other professional organizations
The Institute of Management Accountants, like other professional organizations, has produced a statement of ethics that their members are expected to follow. Find the IMA Statement of Ethical Professional Practice and read it in its entirety.
Describe the ethical principles and standards advocated by the IMA.
Describe how ethical issues should be resolved. Then determine if, and/or, how the IMA sanctions members that have acted unethically.
Find the Association of Certified Public Accountants’ (AICPA) statement on ethics and compare and contrast it with the IMA’s ethical principles and standards, resolution of ethical issues, and possible sanction of members who have acted unethically.
Sample Solution
The IMA Statement of Ethical Professional Practice advocates for a set of ethical principles and standards that all management accountants should follow. Firstly, the statement outlines the need for individuals to demonstrate integrity and objectivity in their professional activities. This includes “being honest and impartial when making decisions”, as well as avoiding any conflict of interests or bias in order to maintain professionalism.
Secondly, the IMA also stresses the importance of employing competent professional skills when providing services or advice to clients. Management accountants should be aware of relevant laws and regulations that may impact their work before beginning project engagements, and strive to continually enhance their knowledge through continuing education programs.
Thirdly, confidentiality is another key part of the statement given its significance in preserving public trust. All information acquired during performance of duties must remain confidential unless disclosure is necessary for legal purposes or with explicit permission from applicable parties.
Moreover, IMA emphasizes that management accountants should exercise due care when performing tasks independently or as part of a team effort. Competent professionals are expected to not just fulfill expectations but also follow appropriate procedures which could include seeking assistance from colleagues if needed. In addition, adherence to professional code requires management accountants to avoid engaging in any activity deemed unethical by society such as bribery or fraud regardless whether they are working on behalf of an employer or client organization.
Lastly, IMA calls on professionals to observe corporate governance rules whenever possible while maintaining independence at all times relative to internal audit activities performed outside executive oversight controls (IMA Statement). All ethical principles outlined by IMA aim at ensuring integrity and responsibility within financial reporting processes across all related industries globally.
