Ethical challenges for management accountants include:
A)whether to report unfavourable department information that may result in unfavourable consequences for a friend.
B)whether to accept gifts from suppliers,knowing it is an effort to indirectly influence decisions.
C)whether to file a tax return this year.
D)Both A and B are correct.

Question

Quizplus · Accepted Answer

Both option A and B present ethical challenges that must be addressed by management accountants. In the case of option A, the ethical challenge revolves around balancing the obligation to report unfavourable information with the potential negative consequences it may have on a friend. The management accountant must prioritize their professional obligations over loyalty to a friend. In the case of option B, the ethical challenge relates to the receipt of gifts from suppliers, which could compromise the independence and objectivity of the management accountant. Accepting gifts in this context could be perceived as a form of bribery and may influence decisions.

Ethical Challenges for Management Accountants Include