Forums Accounting What are the four Standards of Ethical Conduct for Management Accountants?

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    What are the four Standards of Ethical Conduct for Management Accountants?

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    Management Accountant should behave ethically and they should perform their duties under the guidelines. They should not perform such tasks which would affect their as well as the company’s image. The Institute of Management Accountants (IMA) has developed four standards of ethical professional conduct.

    They are:

    1) Competence- Accountant should maintain the appropriate level of professional advice with learning and developing skills. He should perform tasks and duties in accordance with the law governing. He should also supply information to the management and should recommend which is accurate, clear and reliable.

    2) Confidentiality- Accountant should keep all the information up to himself until there is no authority order. He should inform all relevant parties regarding the appropriate use of confidential information and monitor subordinates’ activities to ensure compliance. He should not use that information for illegal use.

    3) Integrity- He should be in regular touch with business authorities that will allow him to maintain interest. He should refrain himself from engaging in any conduct that would prejudice carrying out duties ethically. He should not engage in activities which are of illegal nature.

    4) Credibility- Accountant is expected to communicate the information fairly. He should disclose all relevant information that could reasonably be expected to influence an intended user’s understanding of the reports, analyses, or recommendations. He should also disclose delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law.

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