a. The profession of accounting has been given a negative image as a result of unethical decision making in major U.S. companies like Enron, Tyco and Adelphia. The Institute of Management Accountants has created “Standards of Ethical Conduct” which demonstrate how ethical behavior should be practiced by professionals. By examining past ethical breaches, a strategy can be developed that can help deter unethical practices from happening in the future. II. Outline
b. The Institute of Management Accountants' (IMA) "Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management". A resource for how ethical behavior should be practiced by accounting professionals. c. The IMA’s Standards have identified four areas of ethical professional conduct: i. Competence- Perform their professional duties in accordance with relevant laws, regulations, and technical standards. ii. Confidentiality- Refrain from using or appearing to use confidential information acquired in the course of their work for unethical or illegal advantages, either personally or through third parties. iii. Integrity- Avoid actual or apparent conflicts of interest, and advise all appropriate parties of any potential conflict. Refrain from engaging in any activity that would prejudice their ability to carry out their duties ethically. iv. Objectivity- Communicate information fairly and objectively. Disclose fully all relevant information that could reasonably be expected to influence an intended user’s understanding of the reports, comments, and recommendations.
III. Personal Learning
This article gave me a new perspective on the world of accounting. Previously, I had believed the misconceptions in the mass media. The general public only saw accountants in big U.S. companies as unethical, unlawful people only trying to make a...