Code of Ethics in Management Accounting and Financial Management
When faced with major problems and dilemmas in management accounting and financial management, practitioners look to the 'standards of ethical conduct' for practitioners of management accounting and financial management. While looking at ethical standards one has to look at four different areas they are competence, confidentiality, integrity, and objectivity. These four areas are the backbone of what management accounting and financial management are made. When faced with a possible violation within this backbone of the ethical standards one should ask themselves two questions, "Will my actions be fair and just to all parties affected?" and "Would I be pleased to have my …show more content…
The next area of ethical standards is integrity. When dealing with integrity practitioners have the responsibility to avoid conflicts and advise potential problems to whom it may concern. Just as a juror in a court case one must not include them self in any action that will cause a prejudice that will influence them ethically. Actions such as accepting presents, money, or possible career advances would break the integrity ethical standards. One is obligated to release all information whether helpful or hurtful and any professional opinion should also be announced. Finally a practitioner must refrain from any action that may discredit the institution.
The last area practitioners must maintain an ethical standard is objectivity. In this area one must communicate fully and objectively. ( D-3) Also a practitioner is not allowed to give any information that may negatively influence the appearance of a report, in correspondence one can not disclose any information that may have some influence on the understanding of a report.
The application of standards of ethical conduct for practitioners of management accounting and financial management must abide by all the aspects of competence,