ACTIVITY 1 FOR MODULE 4
MULTIPLE CHOICE: Choose the letter of the correct answer among the given
options.
1. The American Institute of Management Accountants came up with the
Standards of Ethical Conduct Management for Accountants which have four
sections, namely:
A. Competence, security, integrity and objectivity
B. Competence, confidentiality, integrity and maturity
C. Competition, confidentiality. integrity and credibility
D. Competence, confidentiality, integrity and objectivity
2. Provisions in this section of Ethical Standards for Management Accountants
require management accountants to develop their knowledge and skills and to
do their tasks in accordance with relevant laws, regulations and standards.
A. Competence C. Integrity
B. Confidentiality D. Objectivity
1. Provisions in this section of Ethical Standards for Management Accountants
forbid management accountants to act on or even appear to act on,
confidential information they acquire in doing their work, except when
authorized or when legally obligated to do so.
A. Competence C. Integrity
B. Confidentiality D. Objectivity
1. Provisions in this section of Ethical Standards for Management Accountants
cover avoidance or conflicts of interest, improprieties of accepting gifts or
favors, and other matters generally associated with professional behavior.
A. Competence C. Integrity
B. Confidentiality D. Objectivity
2. According to the Standards of Ethical Conduct, the management accountants
have a responsibility to communicate information fairly and objectively, and disclose
fully all relevant information that could reasonably, be expected to influence an
intended user's understanding of the reports, comments, and recommendations
presented. These provisions are contained in the standards on
C. Integrity C. Confidentiality
D. Credibility D. Competence
1. Which of the following statements relating to Standards of Ethical Conduct for
Management Accountants is correct?
A. A management accountant should refuse all gifts and hospitality
offered by one of the company’s suppliers.
B. A management accountant should inform his superiors regarding the
confidential information acquired in the course of their work and
monitor their activities to assure the maintenance of confidentiality.
C. A management accountant should prepare complete and clear reports
and recommendations before appropriate analyses of relevant and
reliable information.
D. Management accountants have responsibility to disclose fully all
relevant information that could reasonably be expected to influence an
intended user’s understanding of the reports, comments, and
recommendations presented.
1. If a management accountant has a problem in resolving an ethical conflict, the
first action that should normally be taken is to
A. Resign from the company
B. Notify the police
C. Discuss the problem with his/her immediate superior
D. Remain silent
8. Integrity is an ethical requirement for all management accountants. One
aspect of integrity requires
A. Maintenance of the appropriate level of professional competence.
B. Performance of professional duties in accordance with applicable laws.
C. Refraining from engaging in any conduct that would prejudice carrying
out of duties ethically.
D. Avoidance of actual or apparent conflicts of interest and advice all
appropriate parties of any potential conflict.
1. Which of the following statements is true?
A. Management accountants have the responsibility to maintain an
appropriate level of professional expertise by continually developing
knowledge and skills
B. Management accountants are allowed to reveal confident information
to the external users of accounting information.
C. It is right to discuss problems with the immediate superior even if it
appears that the superior is involved
D. Management accountants should not abstain from engaging in or
supporting any activity that might discredit the profession.
2. Which of the following statements is false?
A. If the immediate superior is the chief executive officer, or equivalent, the
acceptable reviewing authority may be a group such as the audit committee,
board of directors, board of trustees or owners
B. Management accounting is an integral part of the controller’s function in an
organization.
C. The Standards of Ethical Conduct for Management Accountants include
concepts related to competence, confidentiality, integrity and consistency.
D. Management accountants have the responsibility to inform all relevant parties
regarding appropriate use of confidential information. Monitor subordinate
activities to ensure compliance.
