Using the code of ethics for management accountants, recommend the approach that emily should take

Introduction

Management accountants should behave ethically. They have an obligation to follow the highest standards of ethical responsibility and maintain good professional image.

The Institute of Management Accountants (IMA) has developed standards of ethical professional conduct. The IMA Statement of Ethical Professional Practice has been revered as the central code of ethics for management accountants.

1. Competence

• Maintain an appropriate level of professional expertise by continually developing knowledge and skills.
• Perform professional duties in accordance with relevant laws, regulations, and technical standards.
• Provide decision support information and recommendations that are accurate, clear, concise, and timely.
• Recognize and communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity.

2. Confidentiality

• Keep information confidential except when disclosure is authorized or legally required.
• Inform all relevant parties regarding appropriate use of confidential information. Monitor subordinates' activities to ensure compliance.
• Refrain from using confidential information for unethical or illegal advantage.

3. Integrity

• Mitigate actual conflicts of interest; regularly communicate with business associates to avoid apparent conflicts of interest. Advise all parties of any potential conflicts.
• Refrain from engaging in any conduct that would prejudice carrying out duties ethically.
• Abstain from engaging in or supporting any activity that might discredit the profession.

4. Credibility

• Communicate information fairly and objectively.
• Disclose all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations.
• Disclose delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law

Resolution of Ethical Conflict

In applying the Standards of Ethical Professional Practice, you may encounter problems identifying unethical behavior or resolving an ethical conflict. When faced with ethical issues, you should follow your organization's established policies on the resolution of such conflict. If these policies do not resolve the ethical conflict, you should consider the following courses of action:

• Discuss the issue with your immediate supervisor except when it appears that the supervisor is involved. In that case, present the issue to the next level.
• If you cannot achieve a satisfactory resolution, submit the issue to the next management level. If your immediate superior is the chief executive officer or equivalent, the acceptable reviewing authority may be a group such as the audit committee, executive committee, board of directors, board of trustees, or owners. Contact with levels above the immediate superior should be initiated only with your superior's knowledge, assuming he or she is not involved. Communication of such problems to authorities or individuals not employed or engaged by the organization is not considered appropriate, unless you believe there is a clear violation of the law.
• Clarify relevant ethical issues by initiating a confidential discussion with an IMA Ethics Counselor or other impartial advisor to obtain a better understanding of possible courses of action.
• Consult your own attorney as to legal obligations and rights concerning the ethical conflict.

Key Takeaways

The IMA Code of Ethics sets out standards to maintain:
1. Competence
2. Confidentiality
3. Integrity and
4. Credibility

It also suggests steps in resolving ethical conflict: discuss it with immediate supervisor first, bring up to the next management level if unresolved, talk to an IMA advisor, or consulting a lawyer in case of a legal offense.

Web link

APA format

Code of ethics for management accountants (2022). Accountingverse.
https://www.accountingverse.com/managerial-accounting/introduction/code-of-ethics.html

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Harry Haney, manager of the Eastern Division of MertockCo., made the following comment to the manager of theCentral Division: It’s all well and good for you to say that I should dis-regard sunk costs when I consider whether to replace the old, inefficient equipment with new, more efficientequipment. But my performance evaluation is based onnet operating profits divided by total assets. The newequipment will increase my total asset base and lowerthe ratio of profits to assets, hurting my performance.Thus, I will not sell the old equipment.Do you agree with Haney’s statement? Why or why not?

You are a manager at Percolated Fiber, which is considering expanding its operations in synthetic fiber manufacturing. Your boss comes into your office, drops a consultant’s report on your desk, and complains, "We owe these consultants $1 million for this report, and I am not sure their analysis makes sense. Before we spend the $25 million on the new equipment needed for this project, look it over and give me your opinion." You open the report and find the following estimates (in thousands of dollars) for the project:       Project year       1 2 … 9 10 Sales revenue 30,000 30,000   30,000 30,000 - Cost of goods sold 18,000 18,000   18,000 18,000 =Gross profit 12,000 12,000   12,000 12,000 - Gen, sales and admin expenses 2,000 2,000   2,000 2,000 - Depreciation 2,500 2,500   2,500 2,500 =Net operating income 7,500 7,500   7,500 7,500 - Income tax 2,625 2,625   2,625 2,625 =Net Income…

You are a manager at Percolated​ Fiber, which is considering expanding its operations in synthetic fiber manufacturing. Your boss comes into your​ office, drops a​ consultant's report on your​ desk, and​ complains, "We owe these consultants $ 1.1 million for this​ report, and I am not sure their analysis makes sense. Before we spend the $ 29 million on new equipment needed for this​ project, look it over and give me your​ opinion." You open the report and find the following estimates​ (in millions of​ dollars):   Project Year Earnings Forecast​ ($ million) 1 2 . . . 9 10 Sales revenue 28.00028.000 28.00028.000   28.00028.000 28.00028.000 minus−Cost of goods sold 16.80016.800 16.80016.800   16.80016.800 16.80016.800 equals=Gross profit 11.20011.200 11.20011.200   11.20011.200 11.20011.200 minus−​Selling, ​general, and administrative expenses 2.3202.320 2.3202.320   2.3202.320 2.3202.320…

What are the four 4 standards of ethical conduct of a management accountant?

What are the ethical responsibilities of a management accountant?

What are the 4 standards of ethical behavior?

Which of the following are ethical standards for management accountants I competence II objectivity III confidentiality IV integrity?