For each of the situations listed, identify the primary standard from the IMA Statement of Ethical Professional Practice that is violated (competence, confidentiality, integrity, or credibility).
1. Benjamin, the controller who oversees transfer policies at Bristal Industries, does not inform management that his sister is the principal partner in a consulting firm that is bidding on work at Bristal Industries.
2. Each month, Jenna, a corporate controller, prepares segment reports for all of the divisions of her company. In these reports, she includes every general ledger account. As a result, the report for each division is several pages long and no one except Jenna and her staff can interpret the reports.
3. In the past six years since he graduated with an accounting degree, Joe has not at-tended any continuing education seminars. A major part of Joe’s job involves preparing performance reports. He has figured that he knows enough to do his job since he has not forgotten any relevant information from his college degree program.
4. In casual conversation with friends on a Friday night, Loren talks about how transfer prices are set at the company where he is an accountant. As part of that conversation, he shares the variable costs of the company’s main product.
5. In the year- end report to the board of directors, Samuel, the controller, prepares the performance report. The board will base the annual bonuses on this report. Samuel designs the report so that the favorable Key Performance Indicators (KPIs) are displayed prominently, while the KPIs that are unfavorable are either not included, or are buried deep in the later pages of the report so that they are unlikely to be seen.

  • CreatedAugust 27, 2014
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