Question 1

Corporate governance

Accepted Answer

The answer of Corporate governance
...

Question 2

Which of the following would likely constitute a breach of ethics for a management accountant?

Accepted Answer

The answer of Which of the following would likely constitute...

Question 3

CMAs are required to follow the formal codes of ethical conduct provided by their professional association.

Accepted Answer

CMAs are required to follow the formal codes of ethical conduct provided by their professional association, which is the Institute of Management Accountants (IMA). The IMA Code of Ethics includes four ethical principles: competence, confidentiality, integrity, and credibility, and CMAs are expected to uphold these principles in all their professional activities. Failure to comply with the IMA Code of Ethics can result in disciplinary action by the association, including suspension or revocation of CMA certification.

Question 4

An accountant that agrees with the company president to defer the recognition of a revenue is in a breach of which of the following dimensions of professional conduct?

Accepted Answer

By deferring recognition of a revenue, the accountant is not acting in the best interests of the public or upholding the integrity of the accounting profession. It could be seen as an attempt to manipulate the financial statements for the benefit of the company or its executives, which goes against the fundamental values of the profession.

Question 5

Staff management includes

Accepted Answer

Staff management refers to the management of a company's employees, and human-resource managers are responsible for overseeing this function. Manufacturing, purchasing, distribution, and sales are all separate functions within a company and do not necessarily involve staff management.

Question 6

Non-compliance with a code of professional ethics for management accountants includes which of the following penalties?

Accepted Answer

Non-compliance with a code of professional ethics for management accountants can result in fines, public censure, and loss of license to practice. Imprisonment is not typically a penalty for ethical violations in the accounting profession.

Question 7

Professional ethics for a Certified Management Accountant in Canada were established by

Accepted Answer

The answer of Professional ethics for a Certified Management Accountant...

Question 8

Corporate social responsibility is

Accepted Answer

Corporate social responsibility (CSR) refers to the voluntary integration of social and environmental concerns into a company's business operations, rather than being mandated by government or international trade agreements. While some companies may choose to adopt a code of ethics, this is not the same as CSR, which involves taking active steps to minimize a company's negative impact on the environment and society while also creating positive social and environmental outcomes.

Question 9

How does a controller help "control" a company?

Accepted Answer

The answer of How does a controller help "control" a...

Question 10

Discuss the cost-benefit approach guideline management accountants use to provide value in strategic decision making.

Accepted Answer

The answer of Discuss the cost-benefit approach guideline management accountants...

Question 11

The person(s) responsible for providing advice and assistance to line managers is/are

Accepted Answer

Staff management is responsible for providing advice and assistance to line managers. This includes areas such as HR, training, and organizational development. The other options listed are typically focused on financial management and do not have direct responsibility for advising and assisting line managers in their operational decisions.

Question 12

What areas of responsibility does a chief financial officer have in a typical organization?

Accepted Answer

The answer of What areas of responsibility does a chief...

Question 13

Management accountants have important ethical responsibilities that are related to competence, duty of care, objectivity, and professionalism.

Accepted Answer

Management accountants are responsible for ensuring their competence and staying up-to-date with current practices and regulations. They have a duty of care to act in the best interest of their clients or employers and maintain objectivity in their work. Additionally, they are expected to maintain a high level of professionalism and adhere to ethical standards.

Question 14

Professional codes of conduct relating to the accounting profession

Accepted Answer

Professional codes of conduct are ethical guidelines that specify how professional accountants must behave. While they are not enforceable as laws, failure to comply with the codes can result in disciplinary action by professional organizations and loss of license to practice. The enforcement of laws, federal or provincial, is separate from the enforcement of professional codes of conduct.

Question 15

An accountant, as a member of a professional organization, must follow only those ethical requirements as are prescribed by the organization they belong to, such as the Society of Management Accountants of Canada.

Accepted Answer

This statement is false. An accountant must follow ethical requirements prescribed by their professional organization as well as those set by regulatory bodies and laws. These ethical requirements may also differ depending on the specific circumstances of the accounting profession.

Question 16

The ________ is primarily responsible for the quality of the information supplied in both internal and external reports.

Accepted Answer

The controller is responsible for the quality of the information supplied in both internal and external reports. The COO is responsible for the day-to-day operations, the CIO is responsible for the information technology strategy, the treasurer is responsible for managing the company's financial resources, and the accountant is responsible for recording financial transactions.

Question 17

What is the professional designation for management accountants?

Accepted Answer

The professional designation for management accountants is Certified Management Accountant (CMA). Chartered Accountant (A) and Certified General Accountant (C) are alternatives for general accountants, while Certified Financial Executive (D) and Chartered Management Accountant (E) are not commonly used designations.

Question 18

Discuss the potential behavioural implications of performance evaluation.

Accepted Answer

The answer of Discuss the potential behavioural implications of performance...

Question 19

If a managerial accountant were not keeping up with current developments in managerial accounting, that behaviour might violate a competence standard of professional ethical behaviour.

Accepted Answer

Keeping up with current developments in one's field is an expectation of professional competence, and a failure to do so could potentially violate professional ethical standards.

Question 20

A company may employ CMAs and other persons who are required to meet certain standards of professional conduct due to their membership in relevant professional organizations. These standards of conduct often include the areas of responsibility, competence, fairness and independence. However, holding only a few people responsible for sound professional conduct does not make a company behave ethically.
Required:
What can a company do to increase the likelihood of its employees being ethical in all their undertakings?

Accepted Answer

The answer of A company may employ CMAs and other...

Quiz 1: The Accountants Vital Role in Decision Making