Certified Management Accountant Professional Ethics 3

Question 1

A CMA is asked by her CFO to prepare forecasts using assumptions she believes are unreasonably optimistic. Which ethical principle is MOST directly at stake?

Accepted Answer

Credibility

Answer

Credibility requires CMAs to communicate information fairly and objectively; preparing forecasts with knowingly unrealistic assumptions violates this principle.

Question 2

Under the IMA ethical standards, which of the following activities would be considered a violation of confidentiality?

Accepted Answer

Sharing proprietary cost data with a former colleague who now works for a competitor

Answer

Sharing proprietary data with a competitor via a former colleague breaches the confidentiality obligation, which survives employment changes.

Question 3

The IMA's ethical conflict resolution guidance suggests that if a CMA's supervisor is involved in the unethical conduct, the CMA should next approach:

Accepted Answer

The next higher managerial level or the audit committee

Answer

When the immediate supervisor is implicated, the CMA should escalate to the next higher level of management or the audit committee.

Question 4

A CMA working in cost accounting discovers evidence of environmental violations. Under IMA standards, this situation is BEST addressed by:

Accepted Answer

Reporting to the immediate supervisor or appropriate internal channel

Answer

IMA standards require reporting ethical violations through appropriate internal channels before considering external reporting.

Question 5

Which of the following BEST describes 'pressure to compromise ethics' that the IMA Statement addresses?

Accepted Answer

Management directing an accountant to misrepresent financial results

Answer

Pressure to misrepresent financial results is a classic ethical conflict the IMA Statement addresses, requiring the CMA to refuse and escalate.

Certified Management Accountant Practice Test

Certified Management Accountant Practice Test

Certified Management Accountant Professional Ethics 3