Preview

Ima's and Ethics

Better Essays
Open Document
Open Document
1563 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ima's and Ethics
ETHICAL CONDUCT

INTRODUCTION Institute of Management Accounting’s (IMA) mission is to provide a forum for research, practice development, education, knowledge sharing, and the advocacy of the highest ethical and best business practices in management accounting and finance.
The IMA has strongly enforced ethics since it’s inception. Their ethics committee was one of the first committees established in 1919, at their very first meeting. It was call ‘The Standard of Ethical Conduct for Management Accountants. This shows that the IMA is extremely serious when it comes to the professionalism required by it’s members. This guideline has been revised twice, once in 1979 and then again in 2005. Upon the last revision, the code of ethical conduct became the IMA Statement of Ethical Professional Practice.
All members must take an oath and adhere to the Institute of Management Accounting (IMA) Standards of Ethical Professional Practice. The are four main principles of this code of ethical conduct.
They are: I. Honesty II. Fairness III. Objectivity IV. Responsibility
It is the responsibility of every accountant to comply with these standards to avoid any type of disciplinarian action.
According to the IMA each member must be professional. Many of the areas of professionalism to be maintained includes a commitment to education. This is the section of the IMA Statement of Ethical Professional Practice that requires all accountant members to stay abreast of the many laws, regulations and technical standards. Due to our everyday landscape and the continual changes in accounting, taxes, etc., the IMA has a continuing education (CE) requirement. All accountants must take a certain amount of CE classes so that they’ll be able to provide sound advice to their clients. This does not only keep them knowledgeable, it also keeps them aware of their professional limitations.
Another part of an accountant’s responsibility is to respect the

You May Also Find These Documents Helpful

  • Good Essays

    The auditor must have adequate technical training and proficiency to perform the audit. | Jones, CPA hired to students that did not have any experience. |…

    • 547 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Acc/325 Phase 2

    • 983 Words
    • 4 Pages

    Ethics plays such an important role in the business world. There are organizations and boards that set guidelines specifically to improve the work environment and help control the amount of ethical dilemmas. The SEC works as the head quarters for these boards and has developed many new guidelines since the crisis of the early 2000’s. The International Ethics Standards Board for Accountants (IESBA) has established ethical standards and guidelines for accountants similar to those of the AICPA’s Rules of Conduct. There are many organizations that are working in unison to create the best atmosphere for the business world and those involved.…

    • 983 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    There are five sections to the AICPA Rules of Professional Conduct: Independence, Integrity, and Objectivity, General Standards Accounting Principles, Responsibilities to Clients, Responsibilities to Colleagues, and Other Responsibilities and Practices. Each section, except for Responsibilities to Colleagues, has rules for an accountant to follow. Some of the rules are flat out rules with no exception, but some of the rules can be interpreted in different ways depending on the person reading them. In order to comply with the AICPA Rules of Professional Conduct, an accountant must understand each rule and understand what the rules really mean.…

    • 1873 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Aicpa Comparison

    • 546 Words
    • 3 Pages

    Both the AICPA and IMA discuss the importance of integrity, and that avoiding conflict of interest is critical. This is discussed in the public trust section of the AICPA, and in the integrity section of the IMA. They also both discuss objectivity, stating that it is important to be impartial and honest while making decisions. One notable difference between the AICPA and IMA is the AICPA deeply discusses how members need to remain independent in their practices, while the IMA does not discuss it at all. The reasoning for this could be that Independence may be more valued in public accounting than non-public accounting.…

    • 546 Words
    • 3 Pages
    Good Essays
  • Better Essays

    The two boards face an enormous task of creating a set of standards that both will have to agree upon. The two boards are very close to making a major pronouncement that makes it a very interesting period for those just entering the MSA program. If the two boards come together with one set of standards, skilled professionals will have to read, absorb, understand, and implement these new standards just as a new student in this field would have to. Therefore, it is an excellent time to be learning these new standards for the accounting profession even before actually worked in the field or having to use previous regulations. Learning about these new methods while in the MSA program may give students an advantage of…

    • 1149 Words
    • 5 Pages
    Better Essays
  • Good Essays

    The umbrella statement in the Code is that the overriding responsibility of CPAs is to exercise sensitive professional and moral judgments in all activities. By linking professional conduct to moral judgment, the AICPA Code recognizes the importance of moral reasoning in meeting professional obligations. That, in turn, automatically increases the importance of the AICPA code in general. (Steven M. Mintz DBA, CPA, Roselyn E. Morris PhD, CPA. Ethical Obligations and Decision Making in Accounting, © 2011 McGraw-Hill Company)…

    • 708 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    The AICPA Code of Professional Conduct represents the principles that “are based on the values of the profession and the traits of character that enable CPA’s to meet their obligations to the public” (Mintz & Morris, 2011). The AICPA Code of Professional Conduct has six essential principles to guide them in the performance of their profession. The six essential principles are: Responsibilities, the Public Interest, Integrity, Objectivity and Independence, Due Care, and Scope and Nature of Services. All these principles need to be follow by the members of the AICPA. These principles link the professional conduct to moral judgment and recognize the responsibility that CPA’s have to his or her clients as well as the public.…

    • 729 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    The American Institute of Certified Public Accountants (AICPA) is an organization that provides voluntary membership to more than 350,000 certified public accountants (CPAs) from 128 countries. With so many CPAs belonging to the association, the code of professional conduct is typically used to discuss the ethical obligations of the CPAs. The principles of the code of professional conduct are responsibility, public interest, objectivity and independence, due care, and scope and nature of services. The three most important purposes are integrity, public interest, and due care.…

    • 479 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The American Institute of Certified Public Accounts (AICPA) Code of Professional Conduct is a body of principals that has a goal to guide Certified Public Accountants (CPA’s) in the “performance of it professional responsibilities” (Mintz, 2011). The AICPA Code of Professional Conduct has six essential principles and they are: Responsibilities, the Public Interest, Integrity, Objectivity and Independence, Due Care, and Scope and Nature of Services. Each of these principles is meant to be followed by the members of the AICPA. These articles are used to explain the responsibilities that CPA’s have to clients, colleagues and to the public.…

    • 417 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    The AICPA is a voluntary association of CPA’s. There are several hundred thousands of CPA’s around the world. This association is used to discuss the ethical obligations of all CPA’s. These principles that the association has and will establish are in place to make sure that the public’s trust is honored regardless of the effect it will have on the CPA’s personal benefits. These principles are based on the values and the virtue of the CPA’s themselves. I believe that the three most important purposes of the AICPA code of professional conduct are integrity, objectivity, and due care.…

    • 554 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Founded in 1887, the American Institute of Certified Public Accountants (AICPA), a voluntary association of CPAs, created a strict code of professional conduct (AICPA, 2012, pg. 1). The purpose of the code of conduct is to discuss the ethical obligations of CPAs and to provide guidance and rules to the members. The AICPA code consists of six principles or purposes for which the members abide, honor, and respect. “The principles include responsibilities; the public interest; integrity; objectivity and independence; due care; and scope and nature of service” (Mintz & Morris, 2011, pg. 10). The three most important principles are integrity, objectivity, and due care.…

    • 595 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    The American Institute of Certified Public Accountants (AICPA) is a group of CPAs that span across the globe. Its members are all volunteers and consist of over 350,000 people. Most of their debates and discussions are how accountants should handle certain professional issues. There are six principles within the AICPA code of professional conduct; responsibilities; public interest; integrity; objectivity and independence; due care; and scope and nature of services. Although all six principles are extremely important for an accountant to uphold one of the most important principles is responsibility. The organization believes that the CPAs have a responsibility to uphold morals and values when dealing with the public professionally. Accountants are often dealing with sensitive information, it is very important that they keep these documents and information secure for their clients. Leaking out personal bank accounts, social security information, or passwords can cripple a customer and organization. Word of mouth spreads rapidly if a client or organization finds out that their accountant is unethical; the last thing an accountant wants is to have a tainted reputation. Public interest is another valuable principle for an accountant to possess. “Members should accept the obligation to act in a way that will serve the public interest, honor the public trust, and demonstrate commitment to professionalism.” (2013, aicpa.org) The AICPA feels that it is the accountants’ obligation to solve the problems of their clients and serve their best interests; keeping in mind the laws at which they must abide. According to dictionary.com integrity is the “adherence to moral and ethical principles” which is another significant belief in the American Institute of Certified Public Accountants code of professional conduct. Integrity is important in accounting in that it requires them to be honest and direct with information. Certified Public…

    • 505 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Accounting Ethics disciplinary proceedings may be brought against an accountant by professional societies such as the AICPA. Accountants have great responsibilities to their clients…

    • 1805 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Acc 561 Final Exams Help

    • 928 Words
    • 4 Pages

    6) According to the Institute of Management Accountants’ Statement of Ethical Professional Practice, the standard of objectivity includes _____.…

    • 928 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    © copyright 2008 Institute of Management Accountants These materials are copyrighted and may be reproduced in print form only for use by individual IMA CMA exam prep product purchasers and authorized CMA Learning System classroom providers. They may not be used in any way to create derivative works or distributed, reproduced or reused in any way by anyone not having directly purchased CMA exam prep products from IMA. Any CMA or CMA candidate who violates these copyright terms without prior authorization from IMA Professional Development is subject to legal action and will be reported to the ICMA and immediately expelled from the IMA and CMA program. It is your responsibility to ensure that any CMA exam prep materials you are using have been provided to you through authorized channels or personnel. If you are in doubt about the authenticity of your materials or question the means by which they have been provided to you, contact IMA customer service at (800) 638-4427 or (201) 573-9000.…

    • 174 Words
    • 1 Page
    Satisfactory Essays