Certified Management Accountant Professional Ethics 5

Question 1

Under IMA ethical standards, 'objectivity' is MOST closely associated with which principle?

Accepted Answer

Credibility

Answer

The Credibility principle requires members to communicate information fairly and objectively, making objectivity its central component.

Question 2

A CMA in a management role creates a bonus structure that rewards employees for meeting earnings targets, knowing it incentivizes earnings manipulation. This MOST violates:

Accepted Answer

Credibility — structuring incentives that encourage misleading reporting

Answer

Designing systems that systematically encourage misleading financial reporting violates the Credibility standard's requirement for fair and objective information.

Question 3

Which of the following is NOT one of the four principles in the IMA Statement of Ethical Professional Practice?

Accepted Answer

Independence

Answer

The four IMA principles are Competence, Confidentiality, Integrity, and Credibility; Independence is an AICPA/auditing concept, not an IMA principle.

Question 4

A CMA preparing a capital investment analysis intentionally omits negative NPV scenarios to make a pet project look better. This violates PRIMARILY:

Accepted Answer

Credibility, because all relevant information must be disclosed

Answer

Credibility requires disclosing all relevant information, including negative scenarios, so that decision-makers have a complete picture.

Question 5

An IMA member who violates the Statement of Ethical Professional Practice may face:

Accepted Answer

Revocation of CMA certification and termination of IMA membership

Answer

The IMA can revoke CMA certification and terminate membership as its primary disciplinary actions against members who violate ethical standards.

Certified Management Accountant Practice Test

Certified Management Accountant Practice Test

Certified Management Accountant Professional Ethics 5