Question

Discuss the ethical standards for financial and managerial accounting. The IMA (Institute of Management Accountants) and The AICPA (American Institute of Certified Public Accountants) have established ethical standards. Review the ethical standards from each body. Are the standards significantly different? Similar? Do the standards have the same goal(s)

Answer 1

• Managerial ethics ensures all financial information is reported to business owners, directors or managers. Accountant who fail to report negative information or use a company's internal financial information for personal gain can create serious legal situations for business
• The IMA and AICPA are different in some aspects.
• Four standards of etchical conduct in management accountant's professional activities were developed by institute of Management Accountants. The four standards are -  
• Competence
• Confidence
• Integrity
• Credibilit

Standards of AICPA are-:

• Responsibilities principle
• The public intrest principle
• The integrity principle
• Objectivity and independence principle
• Due care principal
• Scope anf nature of services principle

IMA AND AICPA have different goal

• Goal ofAICPA- The AICPA focuses on the sector of the accounting profession that serves investors, lenders and creditors outside of the company.these accountants provide financial statement to assist investors,creditors and owners with decision making regarding credit team, lending decisions or financial investment decisios. These Accountants server customers externally and must maintain a level of trust with these customers. Maintaining hogh ethical standards developes the trust necessary for accountants to serve the needs of the company's owners, creditors and investors.
• Goal of IMA :-The Ima focuses on the sector of the accounting profession that Serves business by working within the company, providing financial data to assist management with decision making budgeting and analying alternative courses of action. These Accountants server customers internally within the organization and must maintain a level of trust with these customers Maintaining high ethical standards developes the trust necessary for accountants to serve the needs of the companies management and employees.