Classify ethical responsibilities (Learning Objective 4)

According to the IMA’s Statement of Ethical Professional Practice (Exhibit 1-6), man¬ agement accountants should follow four standards: competence, confidentiality, integrity, and credibility. Each of these standards contains specific responsibilities. Classify each of the following responsibilities according to the standard it addresses.

Responsibility:

1. Refrain from using confidential information for unethical or illegal advantage.

2. Maintain an appropriate level of professional expertise by continually develop¬ ing knowledge and skills.

3. Communicate information fairly and objectively.

4. Recognize and communicate professional limitations that would preclude responsible judgment or successful performance of an activity.

5. Mitigate actual conflicts of interest. Regularly communicate with business asso¬ ciates to avoid apparent conflicts of interest. Advise all parties of any potential conflicts.

6. Provide decision support information and recommendations that are accurate, clear, concise, and timely.

7. Abstain from engaging in or supporting any activity that might discredit the profession.

8. Disclose all relevant information that could reasonably be expected to influence an intended user’s understanding of the reports, analyses, or recommendations.

9. Inform all relevant parties regarding the appropriate use of confidential infor¬ mation. Monitor subordinates’ activities to ensure compliance.

10. Perform professional duties in accordance with relevant laws, regulations, and technical standards.

11. Refrain from engaging in any conduct that would prejudice carrying out duties ethically.

12. Keep information confidential except when disclosure is authorized or legally required.

13. Disclose delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law.