Samantha Galloway is a managerial accountant in the accounting department of Mustang Industries,Inc.Samantha has just discovered evidence that some of the corporation's marketing managers have been wrongfully inflating their expense reports in order to obtain higher reimbursements from the firm.According to the Institute of Management Accountants' Standards of Ethical Conduct,what should Samantha do upon discovering this evidence?
A) Notify the controller.
B) Notify the marketing managers involved.
C) Notify the president of the corporation.
D) Ignore the evidence because she is not part of the Marketing Department.

Question

Quizplus · Accepted Answer

According to the IMA Standards of Ethical Conduct, the correct action for Samantha to take is to notify the controller, who is responsible for ensuring compliance and proper accounting processes within the organization. It is not appropriate to notify the individuals involved or the president of the corporation without consulting with the controller first. Simply ignoring the evidence would be a violation of ethical responsibilities as a managerial accountant.

Samantha Galloway Is a Managerial Accountant in the Accounting Department