Question

Samantha Galloway is a managerial accountant in the accounting department of Mustang Industries, Inc. Samantha has just discovered evidence that some of the corporation's marketing managers have been wrongfully inflating their expense reports in order to obtain higher reimbursements from the firm. According to the Institute of Management Accountants Standards of Ethical Conduct, what should Samantha do upon discovering this evidence? Multiple Choice О O Ignore the evidence because she is not part of the Marketing Department Notify the president of the corporation. Notify the marketing managers involved. Notify the controller

Answer 1

Option D

Notify the controller.

Members of the institute of Management Accountants' are expected to adhere to

• Integrity
• Competence
• Credibility
• Confidentiality

When she finds out the misconduct of marketing managers in inflating expenses to obtain higher reimbursements, she is expected to report it to the relavent authorities. In this case to controller, the one in charge of all financial and management accounting activities.