Question

What steps should a management accountant take if established written policies provide insufficient guidance on how to handle an ethical​ conflict?

The management accountant should take the following​ step(s): ​(Select all that​ apply.)

A.

Discuss the situation with an advisor from the professional accounting organization you are a member of​ (CA, CGA, or​ CMA).

B.

Clarify relevant ethical issues by confidential discussion with an impartial advisor.

C.

Consult your own lawyer about legal obligations and rights arising from ethical conflicts.

D.

Discuss the problem with the immediate superior​ (except when it appears that the superior is​ involved).

E.

Discuss the situation with the other accountants in your department and ask for their opinion.

Answer 1

Answer -

The Institute of Management Accountants sets standards of ethical conduct for management accountants.

The following steps a management accountant should take if established written policies provide insufficient guidance on how to handle an ethical​ conflict :

(1) -- Discuss the problem with the immediate superior (except when it appears that the superior is involved).

(2) -- Clarify relevant ethical issues by confidential discussion with an impartial advisor.

(3) -- Consult your own lawyer about legal obligations and rights arising from ethical conflicts.

Hence, Option - (B), Option - (C) and Option - (D) are Correct, because all these statement are steps to take when established written policies provide insufficient guidance.

Note - Option - (A) and Option - (E) are Incorrect, because all these statement are not the steps to take when established written policies provide insufficient guidance.