For each of the situations listed, identify the primary standard from the IMA Statement of Ethical Professional Practice that is violated (competence, confidentiality, integrity, or credibility). Refer to Exhibit 1-7 for the complete standard.

1. Alexandria receives an iPad from a salesperson at a lean consulting group. She keeps the iPad, even though she knows that her department will be responsible for selecting a consulting firm to come in to offer lean training sessions next year.

2. Bowes Company operates in a highly competitive environment and has developed some proprietary processes that allow it to maintain a market lead. Franklin, the CFO, does not have employees sign nondisclosure agreements because he feels that they are all family. He avoids talking about the topic.

3. Tammary Corporation has an activity-based costing system. Kourtney prepares reports each month that are long and full of facts. The reports are hard to understand for anyone except for accountants in the company.

4. Jody, an accountant at the Wall Corporation, did not attend the training for the new activity-based costing system because they figure it will not be much different from the current allocation system.
5. Darrius, the plant manager, does not disclose the quality issues he is aware of in the current production process. He figures that he can get them resolved in the next few months.

Data From Exhibit 1-7:-

Transcribed Image Text:

EXHIBIT 1-7 Members of IMA shall behave ethically. A commitment to ethical professional practice includes overarching principles that express our values and standards that guide our conduct. Principles IMA's overarching ethical principles include: Honesty, Fairness, Objectivity, and Responsibility. Members shall act in accordance with these principles and shall encourage others within their organizations to adhere to them. Standards IMA members have a responsibility to comply with and uphold the standards of Competence, Confidentiality, Integrity, and Credibility. Failure to comply may result in disciplinary action. I. Competence 1. Maintain an appropriate level of professional leadership and expertise by enhancing knowledge and skills. 2. Perform professional duties in accordance with relevant laws, regulations, and technical standards. 3. Provide decision support information and recommendations that are accurate, clear, concise, and timely. Recognize and help manage risk. II. Confidentiality 1. Keep information confidential except when disclosure is authorized or legally required. 2. Inform all relevant parties regarding appropriate use of confidential information. Monitor to ensure compliance. 3. Refrain from using confidential information for unethical or illegal advantage.