Chapter 7 Research (ACC)
There a four key standards management accountants should adhere to on top of their principles of honesty, fairness, objectivity and responsibility.
1. Competence - this includes maintaining knoweldge and leadership skills by improving knowledge and skills. This also requires duties to be fulfilled in accordance with laws, regulations, technical standards. They are also to provide advice and support that is accurate, clear, and timely.
2. Confidentiality- information must be kept confidential without authorization or legally required. Inform others of appropriate use of this information. Do not use this information for unethical or illegal advantage.
3. Integrity- do your best to prevent conflicts of interest. Communicate with associates and leadership to avoid these obvious conflicts. Disclose all potential conflicts of interest. Refrain from engaging in activity that discredits yourself or the profession. Contribute to an ethical and positive integrity of the profession and interests you represent.
4. Credbility- always communicate fairly and objectively. Provide all relevant information that can influence a user's understanding, analyses, and recommendations. Report delays or defeciencies in processing, internal controls, or information that may be out of conformance with policies or law.
The IMA recommends accountants to actively seek resolution to unethical issues. They should begin by following policies of her organization; anonymous reporting if applicable. They recommend discussing with immediate supervisor, if they are involved, go to the next level of management. They also provide anonymous helplines that will provide them solutions to how IMA Statement of Ethical Professional Practices can be applied to the issue. They also recommend consulting your own attorney for consulting. In the attempt these all fail they also recommend simply disassociating from the organzation.
My first course of action would be to discuss the matter with the President. Inform him that these actions would put you in direct conflict with company policy and laws and regulations. I would then gague his/her response and then go from there. If I were the accoutant I would immediately contact my attorney. Given the fact it is the President of the company it may not be helpful to consult your direct management or even higher management. This is defintely the first course of action. However, if this particular individual knows other people are involved it may go against their intended outcome. The accountant should also call IMA hotline to see if they have any insight or perhaps more knowledge regarding similar situations. I would recommend dissassociation with the company as a last resort option. This is because one should not have to lose their position for other people's wrongdoings. There also is the risk of your actions being misconstrued and somehow tied into this illegal action.