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Question 4 1 pts Due to recent changes in the organizational bonus structure, accounting managers are now compensated, in part, based on the financial performance
Question 4 1 pts Due to recent changes in the organizational bonus structure, accounting managers are now compensated, in part, based on the financial performance of their divisions. Which ethical principle or standard might this violate? The standard that may be violated would be objectivity, especially since part of compensation is now at stake due to the performance of the organization. This situation presents a clear indication of an instance where the competency of these accounting managers would be in question. It would not violate any of the ethical standards, since bonuses are a normal part of financial compensation at large organizations. Due to the changes in compensation structure, the compensation packages are in clear violation of ethics regulations established by the SEC. D Question 5 1 pts Which of the following best outlines a situation when the IMA standard of credibility might be violated? When the organization reports financial results that below market which in turn impacts the credibilit financial professionals to manage the firm If the management accountants, including the corporate controller, own a stake in a competing firm, and do not disclose this before doing business with their own organization. o Knowingly not including certain information, due to a delay in receiving it from a third party, and not informing the end users of the report that the information they are using is incomplete. Without expertise in emerging technologies like blockchain, Al, and quantum computing, clearly the credibility of management accountants is negatively impacted. Question 6 1 pts To help improve the ethical culture and operating environment present within an organization, the management team established an ethics portal requiring employees to list their name, department, and supervisor. Is this an effective methodology? No.Ethics hotlines and portals can help reduce the possibility of occurrence of ethics issues; however, they should be set up to be anonymous to safeguard employee confidentiality. O No. Ethical hotlines have not usually been shown to reduce the number of ethical violations or issues within an organization. Yes. The establishment of an online-based portal for reporting possible ethical violations, including requiring employee information, reduces the likelihood of frivolous reports. Yes. Setting up an ethical reporting platform such as the one described in the question will eliminate the possibility of ethical issues
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