Although the purpose of the confidentiality standard is to encourage management accountants to remain loyal to their company,failure to disclose knowledge of internal illegal acts to outside authorities can result in the accountants being charged as an accessory to the crime.

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The statement is true. While the confidentiality standard requires management accountants to maintain the privacy of the company's information, they are also obligated to report any knowledge of illegal activities to the appropriate authorities. Failure to disclose such information can result in legal consequences for the accountant.

Although the Purpose of the Confidentiality Standard Is to Encourage