P2F.2 Ethical Considerations for Professionals

Question 1

Four Overarching Ethical Principles of the IMA Statement of Ethical Professional Practice (SEPP)

Answer 1

1. Honesty: truthful or upright
2. Fairness: impartial, free from bias
3. Objectivity: factual, based on reliable evidence
4. Responsibility: accountability

IMA members shall act in accordance with the principles and encourage others within the organization to do the same.

Question 2

Standards of Ethical Professional Practice

Answer 2

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

Question 3

Competence

Answer 3

1. Maintain an appropriate level of professional leadership and expertise by enhancing knowledge and skills.
2. Perform professional duties in accordance with relevant laws, regulations and technical standards.
3. Provide decision support information and recommendations that are accurate, clear and timely. Recognize and help manage risk.

Question 4

Confidentiality

Answer 4

1. Keep information confidential except when disclosure if authorized or legally required.
2. Inform all relevant parties regarding the appropriate use of confidential information. Monitor to ensure compliance.
3. Refrain from using confidential information for unethical or illegal advantage.

Question 5

Integrity

Answer 5

1. Mitigate actual conflicts of interest. Regularly communicate with business associates to avoid apparent conflicts of interest. Advise parties of any potential conflicts of interest.
2. Refrain from engaging in any conduct that would prejudice carrying out duties ethically.
3. Abstain from engaging in or supporting any activity that might discredit the profession.
4. Contribute to a positive ethical culture and place integrity of the profession above personal interest.

Question 6

Credibility

Answer 6

1. Communicate information fairly and objectively.
2. Provide relevant information that could reasonably be expected to influence an intended user’s understanding of the reports, analyses or recommendations.
3. Report delays or deficiencies in information, timeliness, processing or internal controls in conformance with organization policy and applicable law.
4. Communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity.

Question 7

Resolution of Ethical Issues

Answer 7

1. Follow established policies
2. A discussion with the member’s immediate supervisor. If the supervisor appears to be involved, the issue could be presented to the next level of management.
3. IMA offers an anonymous helpline that the member may call to request how key elements of the IMA Statement of Ethical Professional Practice could be applied to the ethical issue.
4. The member should consider consulting his or her own attorney to learn of any legal obligations, rights, and risks concerning the issue.

Question 8

Fraud Triangle

Answer 8

1. Pressure: reason that individual commits fraud.
2. Opportunity: ability or chance that individual may commit fraud without detection.
3. Rationalization: individual’s justification for the fraud. Ex: being underpaid.