Management accountants have a great responsibility to serve various stakeholders. Theseprofessionals prepare data crucial for planning and budgeting in an organization. Besides,management accountants engage in decision-making, planning, and risk management. Due to thenature of their tasks, management accountants are bound to act in the public interest. As Instituteof Management Accountants (IMA) members, accountants are guided by a code of ethics andconduct. According to Garrison et al. (2021), IMA's code of ethics outlines four areas of ethicalresponsibility for management accountants, including professional competence, confidentiality,integrity, and credibility. It also highlights how a management accountant can resolve ethicaldilemmas in their professional practice. The case study of the Fore Corporation involving thevice president of finance, William Earle, and assistant corporate controller, Rachel Arnett,illustrates ethical issues in management accounting.Rachel Arnett violated IMA's code of ethics by revising the proposal to fit Earle's desires.The initial proposal made by Arnett was accurate as it contained reasonable projections with anegative net present value. However, she yielded to Earle's coercion to change the proposal to apositive value to have it accepted by the board of directors. In this case, Arnett violated theprinciples of credibility and integrity highlighted under IMA's Statement. Garrison et al. (2021)indicated that the integrity standard requires accountants to refrain from activities that wouldhinder them from carrying out their responsibilities ethically. Besides, accountants should upholdintegrity and promote a positive ethical culture in an organization. Her credibility was alsocompromised when she concealed deficiencies in the proposal to influence the outcomes.Management accountants must maintain credibility by reporting any shortage in information andcommunicating the constraints that hinder them in their duties. Therefore, Arnett violated IMA