Summarize the ethical standards of management accountants.
Managerial accounting is one of the branches of accounting. It is concerned with the collection, analysis, and interpretation of accounting information. The accounting information is employed by an organization's management to make decisions concerning the operations of a company so as to ensure that it attains its financial goals.
Answer and Explanation:
Ethical standards for management accountants include the following:
- Credibility. Management accountants need to prepare and present information fairy without bias or conflict of interest. An objective presentation of information makes it reliable for managers who use it to make important decisions.
- Integrity. Management accountants should be able to provide honest and straightforward accounting information. This means that they should not provide false information or hide some information. Presenting accounting information that meets the threshold of integrity enables internal users to make well-informed decisions concerning the performance of an entity.
- Competence. This is an ethical standard that requires management accountants to stick to relevant laws and regulations while presenting accounting information. If an accountant does not follow professional rules, then there are chances that the information provided may be unreliable.
- Confidentiality. This an important ethical principle that every management accountant should adhere to. Management accountants are not required to disclose information about a business or a client without being granted the authority to do so. This would help the management accountants to develop a good relationship with their clients.
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from Business Management: Help & ReviewChapter 9 / Lesson 1