Font 1-A3 Professional Ethics Exhibit 1-7 on page 19 lists four main categories
ID: 425333 • Letter: F
Question
Font 1-A3 Professional Ethics Exhibit 1-7 on page 19 lists four main categories of ethical standards for management accountants competence, confidentiality, integrity, and credibility. For each of the following situations, indicate which of these four should influence the manager and what the appropriate action should be 1. At a dinner party, a guest asked a General Mills manager how a major new cereal was doing The manager had just read a report that said sales lagged much below expectation. What should he say? 2. Felix just graduated from business school with an accounting major and joined the controller's of Pioneer Enterprises. His boss asked him to evaluate a market analysis for a potential new product prepared by the marketing department. Felix knows very little about the industry and he never had a class to teach him how to make a market analysis. Should he just do the best he can on the analysis without asking for help? 3. Mary Sue prepared a budget for a division of Southeastern Electronics. Her supervisor, the division was not happy that she included results for an exciting new product that was to be in a month. He asked her to leave the results for the product out of the budget. That way the financial results for the product would boost actual profits well above the amount budgeted, resultina in favorable reviews for the division and its managers. What should Mary Sue do (Ctrl) IFExplanation / Answer
Answer 1: The manager should maintain confidentiality and refrain himself to share any confidential information. He can mention that he is bound with the ethics code of conduct to not share any information unless it authorized disclosure or needed legally.
Answer 2: Felix should showcase ‘competence’ standards by performing his professional duties and should recognize his limitation. Felix can communicate this to his boss by showcasing that he is a responsible for his performance. Felix can also develop necessary knowledge and skills needed to perform his assigned task and offers timely recommendations.
Answer 3: Mary should showcase ‘credibility’ by showing the relevant information or reports to make her point valid. Mary should communicate fairly with the objective of the information furnished.