The paper "Management Accounting Issues" is a great example of a finance and accounting assignment. Unlike financial accounting, management accounting does not need to be regulated by a regulating agency (such as AASB). However, it is ‘ governed/regulated’ by its own ‘ Codes of Conduct’ (such as those mentioned in the textbook). How you think non-adherence to these codes of conduct (choose any one) may result in unethical decisions in large corporations. Non-adherence to the management accounting codes of conduct may result in unethical decisions especially when those involved in making decisions act in their own interest rather than that of the organization at large.
For instance, one of the fundamental principles of the Institute of Chartered Management Accounts (CIMA) Code of Ethics is integrity. Under this principle, management accountants are required to be honest, straightforward and truthful in all business and professional relationships. Management accountants are required not to be associated with any information that they believe contains substantially misleading or false statements, or which is misleading through omission (CIMA, 2015). It is apparent that if management accountants fail to adhere to this requirement, they are likely to make unethical decisions that affect an entire organization. Part B (4 Marks) i.
Given this situation, describe in your own words your ethical responsibilities in the light of the CIMA code of professional conduct. The act by Joe Taylor is contrary to section 300.12 of the CIMA Code of Ethics, which touches on the issue of a member being “ pressured to become associated with misleading information” (CIMA, 2015, p. 33). In light of this, I would follow the guidance given in section 340.3 of the code of ethics of CIMA, which prohibits members from deliberately misrepresenting facts or subordinating their judgment when carrying out their professional duties for their employer (CIMA, 2015).
Therefore, I would not give in to Joe Taylor’ s pressure to alter the date of the revenue in question because doing so would be unethical.
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CIMA. (2015, January). CIMA code of ethics for professional accountants. Retrieved from http://www.cimaglobal.com/Documents/Professional%20ethics%20docs/2015%20code%20of%20ethics/CIMA_Code_of_Ethics2.pdf
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Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2010). Managerial accounting: Tools for business decision making (5th ed.). Hoboken, NJ: John Wiley & Sons.