Question

The Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management states that significant ethical issues should be discussed first with an immediate superior unless the superior is involved. If satisfactory resolution cannot be achieved when the problem is initially presented, then the issues should be:a. submitted to the next higher managerial level.b. submitted to the chief executive officer of the firm.c. submitted to the audit committee, executive committee, board of directors, or owners.d. submitted to outside legal counsel.

Answer 1

Answer:

a. submitted to the next higher managerial level.

Explanation:

IMA states the following standards of conduct in management accounting: competence, confidentiality, integrity and credibility.... Confidentiality entails accountants to divulge information only at the behest of their supervisor. Integrity forbids managers to engage in unethical behavior. Once an issue can't be resolved the standard procedure is to move a step up the ladder for further assistance.