Client Relationship Management & Ethical Standards Flashcards

A consultant is working with a public-sector client and discovers evidence of fraud during the engagement. Applying CMC ethical standards, the consultant's priority is to:

Answer: Consult legal counsel, document findings, and follow the proper reporting and escalation process

Suspected fraud requires careful documentation, legal consultation, and adherence to appropriate reporting protocols rather than unilateral or no action.

Which stakeholder mapping approach best supports ethical relationship management across a complex client organization?

Answer: Identifying and understanding the interests, influence, and concerns of all key stakeholders

Ethical and effective consulting requires understanding the full stakeholder landscape, including those with opposing views, to deliver balanced and implementable recommendations.

A CMC consultant is asked by a client to falsify data in a report that will be presented to investors. The only correct ethical response is to:

Answer: Refuse and, if the client persists, withdraw from the engagement

Falsifying data is a fundamental ethical violation; the consultant must refuse and withdraw if the client insists on fraudulent conduct.

When a consulting firm simultaneously audits and advises the same client on the same strategic issue, this raises which primary ethical concern?

Answer: Self-review threat that compromises independence and objectivity

Providing both audit and advisory services on the same issue creates a self-review threat where the consultant effectively evaluates their own work.

According to CMC ethical standards, which practice best demonstrates professional integrity when delivering bad news to a client?

Answer: Delivering findings promptly, clearly, and with supporting evidence, alongside options for remediation

Integrity requires timely, clear, and evidence-based communication of difficult findings, together with constructive options for the client to consider.

A CMC professional discovers that a colleague on the same engagement is submitting inflated expense claims. The ethical course of action is to:

Answer: Confront the colleague privately and, if unresolved, escalate through proper firm channels

CMC professionals are obligated to address unethical conduct by colleagues, first directly and then through internal escalation if the behavior continues.

The CMC ethical standard of 'independence' is best maintained by a consultant who:

Answer: Structures engagements so conclusions are not influenced by client pressure, financial dependency, or personal relationships

Independence requires structuring one's practice and mindset so that conclusions are driven by evidence and professional judgment, free from undue external influence.