Question 1

Roland and Curt decided they need a management accountant for helping them understand their business

and hired a person named Manny for this role. Manny 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 complete any continuing professional

development in the last few years. Despite his lack of experience in other industries, Manny has applied for

the position of management accountant for Stylish Chairs. When applying for this work, Manny did not disclose

his lack of experience in the industry.

Required

State two of the ethical standards, as provided by the Institute of Management Accountants (IMA) Statement

of Ethical Professional Practice1, which are being jeopardized and justify why these two standards are being

jeopardized. Explain how applying for the work could be done without jeopardizing these two ethical

standards. (For an answer with more than two ethical standards the first two standards will be marked, and

the remainder will be ignored). (Chapter 1, 10 marks)