For the following scenarios, indicate which of the four standards in the IMA’s Statement of Ethical Professional Practice is being violated: 

(1) Competence; 

(2) Confidentiality; 

(3) Integrity; 

(4) Credibility. 

Select all that apply.

a. You tell your brother-in-law about a new product your company has developed and plans to release early next year.

b. Your boss trusts you completely, and you currently write all of the company checks and reconcile the bank account. You decide to write yourself a check to cover the bonus that you did not receive last year due to economic cutbacks in your company.

c. Although you have passed the CPA exam, you decide not to attend any professional education classes because you are too busy at work.

d. When you prepare the financial statements for the year, you realize that the company is operating at a loss and are afraid that people will be laid off. You decide to revise your estimate for depreciation and bad debts so that you do not need to book as much expense for the year, which will allow your company to show a small profit for the year.

e. Since you do not know how to use Excel, you decide to prepare all calculations using a calculator and then type all financial reports in a word processing program.

f. You find out that the company you work for is dumping toxic waste in a river about 60 miles away. You decide to call the local newspaper and give it an anonymous tip regarding the illegal activity.

g. You work for a prominent bakery in the area that specializes in pies. Your brother-in-law owns an apple orchard, and although you can purchase the apples more inexpensively from a local supplier, you decide to give the bid to your brother-in-law’s company to help boost his sales.

h. Your company is trying to obtain a bank loan, and your boss has asked you to “make sure” your gross profit margins are 30%, even though realistically they have been 25% for this year. Feeling pressure, you decide to not include any information regarding sales returns or sales discounts for this year, and just report the gross sales for the year.