Certified Management Accountant Professional Ethics 4

Question 1

Which of the following is an example of a violation of the Integrity standard under IMA ethics?

Accepted Answer

Accepting an expensive gift from a vendor seeking a new contract

Answer

Accepting gifts that could influence professional decisions violates the Integrity standard by creating an actual or apparent conflict of interest.

Question 2

A CMA is asked to sign off on financial statements he believes contain material misstatements. Refusing to do so is BEST supported by which principle?

Accepted Answer

Credibility — he must communicate objectively and refuse to certify misleading information

Answer

Credibility requires CMAs to report information fairly and objectively; signing off on materially misstated statements violates this obligation.

Question 3

Under the Sarbanes-Oxley Act, which of the following responsibilities does a CMA in a public company have that reinforces IMA ethical standards?

Accepted Answer

Certifying internal controls and financial statement accuracy alongside senior management

Answer

SOX requirements for accurate financial reporting and internal control certification align with IMA standards of integrity and credibility.

Question 4

A CMA learns during the course of his work that a colleague is embezzling funds. The colleague is also a close friend. Which action BEST reflects IMA ethical standards?

Accepted Answer

Report the embezzlement through appropriate internal channels

Answer

IMA ethical standards require reporting fraud or illegal acts through appropriate internal channels, regardless of personal relationships.

Question 5

A former employer asks a CMA for detailed cost information about a product she worked on. She is now employed elsewhere. She should:

Accepted Answer

Refuse, as confidentiality obligations survive employment

Answer

Confidentiality under IMA standards extends past the end of employment; CMAs must not disclose former employers' proprietary information.

Certified Management Accountant Practice Test

Certified Management Accountant Practice Test

Certified Management Accountant Professional Ethics 4