Luthor is a management accountant specialised in the financial services industry, where he has worked for the 20 years of his career. All his work has been focussed on financial services and, as he was always extremely busy, he did not finish any continuing professional development in the last 10 years.

Despite his lack of experience in other industries, Luthor has applied for pro bono work preparing a report reviewing the effectiveness of a textile mill from the textile industry. When applying for this pro bono work, he did not disclose his lack of experience in the textile industry. Luthor took the pro bono work because he needed some volunteer work in his curriculum vitae (CV) for applying for a promotion in his current job.

Required

a)State two of the ethical standards, as provided by the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice, which are being jeopardized and justify why these two standards are being jeopardized. (4 marks)

b)Explain how applying for the pro bono work could be done without jeopardizing these two ethical standards. (4 marks)