Question

According to the IMA Code of Ethics, what should a management accountant do if a significant ethical situation can't be resolved?

(A) The accountant should confront the guilty party and demand the unethical action be stopped.
(B) The accountant should try to rationalize and understand the position of the other party
(C) The accountant should say nothing about the matter until he or she has retired.
(D) The accountant should first discuss the matter with the immediate supervisor

Answer 1

The correct answer is letter "D": The accountant should first discuss the matter with the immediate supervisor.

Step-by-step explanation:

The Institute of Management Accountants (IMA) Code of Ethics is a set of good practices that rule the accountants' work in benefit of themselves and their organization. The IMA Code of Ethics Integrity principle states that accounts must communicate unfavorable as well as favorable communication.

Following that principle, if an account finds an ethical situation that cannot be resolved, the professional must communicate it to their leads.