Question 3

George is a management accountant specialised in the textile industry, where he has worked for the 20 years of his career. All his work has been focussed on textile industry and, as he was always extremely busy, he did not complete any continuing professional development in the last 5 years.

Despite his lack of experience in other industries, George has applied for pro bono work preparing a report reviewing the effectiveness of a mining enterprise from the mining industry. When applying for this pro bono work, he did not disclose his lack of experience in the mining industry. George 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

1. 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. (8 marks)

2. Explain how applying for the pro bono work could be done without jeopardizing these two ethical standards. (8 marks)