Question

1, The Institute of Management Accountants' Statement of Ethical Professional Practice specifically states, among other things, that management accountants have a responsibility to keep information confidential except when disclosure is authorized or legally required.

True or False

2, 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 onthe resolution of such conflict.

True or False

3, A written policy on ethical conduct is not necessary. A firm without an established policy toward ethical conduct is just as likely to be able to resolve ethical issues as one that does have a written policy.

True or False

Answer 1

1. The answer is “true”.

As per the professional ethical standards of Institute of Management Accountants information with regards to a client should not be disclosed except when the disclosure has to be done as per law or except when the disclosure is authorized.

2. The answer is “true”.

The statement of ethical professional practice states that when accountants are faced with significant ethical issues then they should first follow the established policies of their organization.

3. The answer is “false”.

Firms and organizations that do not have a written policy on ethical conduct will find it more difficult to resolve ethical issues than firms which have written policies. Also in cases of firms that do not have a written policy the number of cases related to ethical issues will be higher.