Question

The Institute of Management Accountants’ Statement of Ethical Professional Practice requires managerial accountants to meet standards

regardingcompetence, confidentiality, integrity, and credibility. Consider the following situations. Which standard(s) are violated in each
situation?
O. You tell your brother that your company will report earnings significantly above financial analysts’ estimates.
O. You see others take home office supplies for personal use. As an intern, you do the same thing, assuming that this is a "perk."
O. At a company-paid conference on e-commerce, you skip the afternoon session and go sightseeing.
O. You failed to read the detailed specifications of a new accounting software package that you asked your company to purchase.
After it is installed, you are surprised that it is incompatible with some of your company’s older accounting software.
O. You do not provide top management with the detailed job descriptions they requested because you fear they may use this
information to cut a position in your department.

Answer 1

The violations of ethical standards in the given situations are as follows - violating integrity by disclosing confidential information, violating credibility by not acting with honesty, violating competence by not utilizing opportunities for professional growth, violating both competence and integrity by not performing due diligence, and violating integrity by withholding information.

Step-by-step explanation:

The Institute of Management Accountants’ Statement of Ethical Professional Practice requires managerial accountants to meet standards regarding competence, confidentiality, integrity, and credibility. Let's analyze each situation:

You tell your brother that your company will report earnings significantly above financial analysts’ estimates. This violates the standard of integrity as you are disclosing confidential information to a non-authorized party.

You see others take home office supplies for personal use and assume it is a 'perk.' This violates the standard of credibility as you are not acting with honesty and transparency.

At a company-paid conference on e-commerce, you skip the afternoon session and go sightseeing. This violates the standard of competence as you are not utilizing the opportunity for professional growth and learning.

You failed to read the detailed specifications of a new accounting software package that you asked your company to purchase. After it is installed, you are surprised that it is incompatible with some of your company’s older accounting software. This violates the standards of both competence and integrity as you did not perform due diligence in ensuring the software's compatibility and functionality.

You do not provide top management with the detailed job descriptions they requested because you fear they may use this information to cut a position in your department. This violates the standard of integrity as you are withholding information that could impact the organization's decision-making process.