1.1 Ethics

Question 1

What are the 4 overarching principles of the IMA’s statement on ethics

Answer 1

HFOR

1. Honesty
2. Fairness
3. Objectivity
4. Responsibility

Question 2

What are the 4 specific standards in the IMA’s statement on ethics

Answer 2

CCIC

1. Competence
2. Confidentiality
3. Integrity
4. Credibility

Question 3

According to the IMA how should members treat actual conflicts of interest

Answer 3

They should be mitigated

Question 4

According to the IMA how should members treat apparent conflicts of interest

Answer 4

They should be avoided

Question 5

Competence requires member to 1:

Answer 5

Maintain an appropriate level of professional expertise

Question 6

Competence requires member to 2:

Answer 6

Perform professional duties in accordance with relevant laws, regulations, and technical standards

Question 7

Competence requires member to 3:

Answer 7

Provide decision support information and recommendations that are accurate, clear, concise, and timely

Question 8

Competence requires member to 4:

Answer 8

Recognize and communicate professional limitations or other constraints that would preclude responsible judgement or successful performance of an activity

Question 9

Confidentiality requires member to 1:

Answer 9

Keep information confidential except when legally required

Question 10

Confidentiality requires member to 2:

Answer 10

Inform all relevant parties regarding appropriate use of confidential info, and monitor subordinate use

Question 11

Confidentiality requires member to 3:

Answer 11

Refrain from using confidential info for an illegal or unethical adantage

Question 12

Integrity requires member to 1:

Answer 12

Mitigate actual conflicts of interest and avoid apparent conflicts. Also inform all parties of potential conflicts

Question 13

Integrity requires member to 2:

Answer 13

Avoid activity that will prevent you from carrying out duties ethically

Question 14

Integrity requires member to 3:

Answer 14

Avoid engaging in or supporting any activity that might discredit the profession

Question 15

Credibility requires member to 1:

Answer 15

Communicate information fairly and objectively

Question 16

Credibility requires member to 2:

Answer 16

Reveal all relevant info that could reasonably be expected to influence the user’s understanding of the document in question

Question 17

Credibility requires member to 3:

Answer 17

Reveal any flaws in information, timeliness, processing, or internal controls in accordance with company policy and applicable laws

Question 18

How should you handle communication of ethical problems to employees or individuals not engaged or employed by your company (resolution of ethical conflict)

Answer 18

This should be avoided unless you believe there is a clear violation of the law

Question 19

What is the first step or resolving an ethical conflict

Answer 19

Discuss the issue with your immediate superior except when it appears they are involved, In this case take it to the next level of management

Question 20

What is the second step or resolving an ethical conflict

Answer 20

Clarify ethical issues in a confidential discussion with an IMA ethics counselor or an impartial advisor

Question 21

What is the third step or resolving an ethical conflict

Answer 21

Consult your own attorney as to legal obligations and reights

Question 22

When attempting to resolve an ethical conflict, if your immediate supervisor cannot satisfactorily resolve the conflict what should you do next

Answer 22

Submit the issue to the next level of management

Question 23

Assuming your supervisor is not involved, how should you proceed in contacting the next level of management

Answer 23

Only with your supervisors knowledge

Question 24

If your immediate supervisor is the CEO or equivalent who is the appropriate reviewing authority

Answer 24

The executive committee, board of directors/audit committee, or owners

Question 25

When attempting to resolve an ethical conflict, if the level of management above your immediate supervisor cannot resolve the issue what should you do next

Answer 25

Exhaust the internal review process. If this does not resolve the process resign an submit a memo to the appropriate company rep