CMCA Ethics and Professional Conduct 3

Question 1

A manager learns that a board treasurer has been using association funds for personal expenses. What is the CMCA's ethical obligation?

Accepted Answer

Document the suspected fraud, report it to the full board and legal counsel, and preserve records

Answer

Suspected fraud must be documented, reported to the board (excluding the implicated member) and legal counsel promptly, and records must be preserved to protect the association.

Question 2

Which of the following best reflects the CMCA's duty of loyalty?

Accepted Answer

Acting in the best interests of the association, not personal or employer gain

Answer

The duty of loyalty requires the CMCA to act solely in the best interests of the association and its members, free from personal or third-party conflicts.

Question 3

A prospective management company asks a departing CMCA to bring the prior association's vendor list and contact database to give the new firm a competitive advantage. What should the manager do?

Accepted Answer

Refuse, as the vendor and contact data belongs to the association and is confidential

Answer

Association records and databases are the property of the association; taking or sharing them for competitive advantage violates confidentiality obligations that persist after employment ends.

Question 4

What does 'due diligence' mean in the context of a CMCA's professional obligations?

Accepted Answer

Exercising the care, skill, and thoroughness a reasonable professional would apply to the same situation

Answer

Due diligence requires the manager to apply reasonable care and professional skill when acting on behalf of the association, consistent with the standard of a competent professional.

Question 5

A CMCA manager has a personal friendship with a contractor who submits the highest bid. How should the manager handle the bid review?

Accepted Answer

Disclose the personal relationship to the board and recuse from the selection decision

Answer

Personal relationships with bidders create conflicts of interest that must be disclosed to the board; the manager should then recuse from the final selection to ensure impartiality.

CMCA - Certified Manager of Community Associations Practice Test

CMCA - Certified Manager of Community Associations Practice Test

CMCA Ethics and Professional Conduct 3