Management accountant and ethical behaviour
Responsible business practices are becoming increasingly important in today's interconnected and data-driven world.
Many states also enforce their own codes of professional ethics. The past few years have highlighted the costs of acting unethically, with a spate of business failures, high public distrust and now, increasingly, public protest against corporate and government wrong doing. The function of management accounting is to support competitive decision making by collecting, processing, and communicating information that helps managers plan, control, and evaluate business processes and company strategy.
Use the Request Full Access button to gain access to this assessment. A management accountant needs to consider ethical implications in order to provide the basis for decision making. All students and members are expected to comply with the Code.
Management accountant and ethical behaviour
The prescriptive, concise communication of specific behavioral standards, as seen in the IMA Statement of Ethical Professional Practice and some of the other ethics codes discussed, effectively enables management accountants to act ethically and to consider their responsibilities to all groups in society. Unfortunately, ethical dilemmas in both large and small organizations are not rare. IMA members must use these ethical principles when engaging in accounting services for their company and the general public. Online resource for all things accounting. See this webcast part five , which underlines the professional responsibilities of management accountants, and highlights the impact of civil society, social media and business. Managerial Accounting Functions A glance at managerial functions shows how integrated its tasks and responsibilities are with business ethics and ethical standards. Ethics is an important part of managerial accounting, and companies may develop a code of ethics or conduct to set the expected ethical behavior for accountants. When someone veers too far from ethical standards, their trustworthiness and judgment come into question. Monitor subordinates' activities to ensure compliance. CIMA is committed to upholding the highest ethical and professional standards and to maintaining public confidence in management accounting. Resign from the organization and submit an informative report to an appropriate representative of the organization after exhausting all levels of internal communication.
This individual and others who work with him or her are in a position of significant power. The International Federation of Accountants, a global governing body, has a code of ethics that applies to managerial accountants worldwide.
Sadly, not everyone who works in the accounting field is trustworthy. This section will finish with a short ethics awareness test and provide links to relevant resources.
Ethical issues/concerns for the management accountant
They have an obligation to follow the highest standards of ethical responsibility and maintain good professional image. Its goals are to help those working in management accounting develop themselves both personally and professionally, by means of education, certification, and association with other business professionals. The underlying approach of the Handbook is to describe how professional accountants should deal with ethical issues by evaluating threats and safeguards. If your immediate superior is the chief executive officer or equivalent, the acceptable reviewing authority may be a group such as the audit committee, executive committee, board of directors, board of trustees, or owners. The role of the management accountant and CIMA As well as educating and regulating its students and members, CIMA also has public interest responsibilities to uphold both through its own work and through the actions and behaviours of the CIMA community. Contact with levels above the immediate superior should be initiated only with your superior's knowledge, assuming he or she is not involved. Unlike financial accounting, where the objective is to provide financial information about what occurred in the past, managerial accounting supplies operational information and has a future-oriented focus. What if there was an oral agreement but not a signed contract? Members face disciplinary action for failure to comply with 13 specific standards for competence, confidentiality, integrity, and credibility. They also must be responsible to themselves and their families while acting in the best long-term interests of the profession as a whole. The IMA Helpline is designed to provide clarification of provisions in the Statement of Ethical Professional Practice, which contains suggestions on how to resolve ethical conflicts. Safeguards that eliminate those threats or reduce them to an acceptable level may be created through external factors like the profession, legislation, or regulation or through factors internal to the work environment.
Refrain from engaging in any conduct that would prejudice carrying out duties ethically.
based on 8 review