After two Boeing 737 MAX 8 aircraft crashed in October 2018 and March 2019 causing 346 deaths, the plane was grounded worldwide in March 2019. The 737 Max was first entered into service in 2017, promising better performance and fuel economy. The plane was significantly more fuel efficient than its predecessors due in part to the use of an engine with a larger fan. However, the larger engine design also required the engines to be located further forward and higher than previous aircraft. The new placement of engines caused changes in the flight handling of the aircraft, so that Boeing added a new Maneuvering Characteristics Augmentation System (MCAS) to stabilize the handling of the aircraft. It is now believed that problems with the MCAS led to the two crashes. Boeing expected the aircraft to return to service by the end of 2019, but on December 16, 2019, the company announced a temporary halt to the production of the aircraft. As of July 2020 it is not clear when the plane will be returned to service.

The ongoing controversy over the 737 Max has included concerns about the relationship between the Federal Aviation Administration (FAA) and Boeing, the relationship between Boeing and various employee unions, the competitive threat from Airbus A320neo, and Boeing’s financial management that focused on shareholder value.

Required

1. What is the management accountant’s responsibility under the IMA Statement of Ethical Professional Practice in situations like this?

 2. Why do you suppose the problems with the MCAS system were not revealed and dealt with earlier?