Answer: The managerial accountant at XYZ Company told her friend that the company expects to announce a major recall in a few weeks. The friend promptly sells all her stock in XYZ. The accountant violated IMA statement of ethical professional practice standards of Competence.
Step-by-step explanation:
The IMA statement of ethical professional practice standards of Competence states that each member has the responsibility to provide information that supports the decision and recommend something accurate, clear and timely.
The managerial accountant at XYZ company provided information that was not very accurate. Based on that information, his friend immediately sells his stock in XYZ company. So, in this case, the manager has not helped his friend in taking a viable decision.