For each of the situations listed, identify the primary standard from the IMA Statement of Ethical Professional
Question:
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.)
Primary | ||
Situation | Standard Violated | |
a. | Jack, an accountant for a smartphone manufacturer, told his friends about a new | |
model of smartphone being released by the company in the following quarter. For | ||
competitive reasons, the company keeps its models shrouded in secrecy until the release date. | ||
b. | The CFO directed that certain expenses be reclassified as assets, so that target profit | |
could be achieved. The CFO rationalized that jobs would be saved by reaching the | ||
targeted income figures. | ||
c. | Even though Meagan's company is adopting a new ERP system that impacts the accounting | |
system, Meagan (a management accountant) has not completed the required ERP training | ||
from the vendor. | ||
d. | Oliver provides an analysis of the profitability of a company-owned store that is managed | |
by Oliver's best friend, Bob. Oliver neglects to include allocated fixed costs in Bob's | ||
report. If Oliver includes those allocated fixed costs, the store will show a loss and Bob's | ||
job could be in danger. | ||
e. | Yimeng, a purchasing agent for her company, received two tickets from a supplier | |
to the upcoming Ohio State versus University of Michigan football game. These tickets | ||
sell for over $500 each. |