CMA USA Part-2 section F Professional ethics {PRINCIPLES}

  IMA statement of professional practice


  • Honesty
  • Fairness
  • Objectivity
  • Responsibility
  • Competency
  • Confidentiality
  • Integrity
  • Credibility 
fraud triangles
rationalisation [justification]

the word ethics is derived from the greek word ethos which means the character or behavior of an individual.
ethics is a study of moral and moral choice.
It focuses on standards, rules, and co-ord of conduct that govern the behavior of individuals and groups.

ethics refers to the well-based standards of right and wrong that prescribes what humans ought to do.
usually in terms of right obligation benefits to the society.
BUSINESS ETHICS: refers to the application of common ethical concepts to the business.
MORAL ETHICS: also called descriptive ethics is the study of human behavior as a consequence of beliefs about what is right or wrong, good or bad.
in a sense, morals are the study of what is thought to be right and what is generally done by a group society, or culture.
PERSONAL ETHICS: it refers to the application of personal values in everything one does.
PROFESSIONAL ETHICS: it refers to personal ethics and must a there in a respect of interactions and business dealings in professional life.
professional ethics means adherence to a professional code of ethics.
there are five categories,
their management focuses on to effectively maintain the desired ethical atmosphere.
  • defining values
  • leadership by example [tone at the top]
  • ethics and internal controls 
  • practical obligation
  • measuring and improving ethical compliance
> the member of IMA should have ethically a commitment to ethical professional practice, and improve overarching principles that express our values and standards that guide over conduct.

honesty means fairness and straightforward conduct.
it is the quality of being written to have integrity and truthfulness.
sincerity frankness and freedom from fraud and deceit.
honesty is the conscience application to the task at hand.
and truthfulness in all analysis and communication honesty is one of the key attribute people look for in an accountant financial professional.
disclosing: all necessary and relevant information to outside auditors.
refusing to record any information that is anything less than accurate.
providing factual information to others so they can make decisions based on truthful information.
Fairness: it means acting in a portion manner and being free of our dishonesty.
injustice requires a person to be open-minded tolerant and accepting and also requires empathetic and just consideration of the needs of others in a particular situation and full disclosure of all necessary information so that appropriate action can be taken within a reasonable form.

providing information and feedback
identifying and fixing mistakes
selecting vendors without prejudice

basic a judgment set of criteria a basic analysis and decisions on facts along.
it requires partial and dispassionate evaluation of conflicting points of view before arriving at a conclusion.
organizations depend on objectivity and internal and external financial professionals to support them in making critical business decisions.

stating relevant financial and legal guidelines and maintaining standards for documenting information.

RESPONS>IBILITY: It means performing and fact for a function completely promptly.
it is the stage of being answerable or accountable for something that is within one's own power, control, or management it requires action to be performed with faithfulness and loyalty, responsibility to the client, and profession one of the most important ethical behavior of financial professionals.
it includes nonjust loyalty to the short-term interest of the client.
bit also the long-term impact of financial decisions.

includes conveying information and the appropriate time of reports and statements accurate.





each member has the responsibility to

Maintain an appropriate level of professional expertise by continuing ly developing knowledge and skills.

Perform professional duties as an accountant with relevant laws and regulations. And technical standards.

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

Recognize and communicate professional limitations and other constraints that preschedule responsible judgment for successful performance and activity.


Each member has the responsibility to,

Keeping information confidential except when the decision is bothered is legally required.

Inform all relevant parties regarding the appropriate use of confidential information and monitor subordinates' activities to ensure compliance.


Refrain from using confidential information for an unethical or illegal advantage.



Each member has the responsibility to

Mitigate actual conflict of interest by regularly communicating with business associates to avoid a parent conflict of interest.

Refrain from engaging in any content that would prejudice carrying out duties ethically.

Upstaining engaging for supporting any activities that discredit proportion.



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Each member has the responsibility to,

To communicate fairly and objectively.

Disclose all relevant information that could reasonably be accepted to influence and interest understanding of report analysis or recommendations.

Disclose delay or defenses against information processing or internal controls in conformance with organizational policy and applicable law.


Applying the standard of ethical professional practice may encounter problems in identifying unethical behavior or resolving ethical conflict.

In the face of ethical issues, we should follow here organizational policies on the resolution of such conflict if these policies do not resolve ethical conflict you should consider the following action process.

Discuss such problems with the immediate superior except when appearing that the superior is involved.

If the immediate superior is the chief executive officer, the acceptable reviewing authority may be a group such as an audit committee, BOD, or owners.

Contact with immediate superior levels with the above should be initiated only with superior knowledge assuming he/she is not involved communicates such problems to authorities or individuals, not an employee or engaged by the organization is not considered appropriate does the member believes there clear violations of the loss.

Clarifying relevant ethical issues by initiating confidential discussions with an IMA ethical counselor or another impartial advisor to obtain a better understanding of possible causes of action.

Consult atony [advocate] as to legal obligations and right concerning addressing any ethical conflict require careful consideration and an examination of all the facts before proceeding.

*checking data and source material

*conforming rumors

*asking old detail questions.


Internal control is designable to provide reasonable assurance as to the achievement of the following.


  • ·        Effectiveness of operations
  • ·        Efficiency of operations
  • ·        Safeguarding of assets
  • ·        Reliability of financial reporting
  • ·        Compliance with laws and regulations

In 1992 committee cause of sponsoring org integrated internal control framework has five events.

  • ·        Control environment
  • ·        Risk assessment
  • ·        Control activities
  • ·        Information and communications
  • ·        Monitory


Ethics are elements of controlling the environment since the control ethics tone for the organization.

It includes ethical values as well as management philosophy and employee competence.

Ethics deal with values relating to human content they look at what is right and what is wrong as well as what is good and bad.

A code of ethics is a set of moral values and conduct to be followed by the organizational personnel.




It is involved in the treatment of each person.


It recognizes that people have many different views and bases that they use to justify the decision as right or wrong the visit tries to determine solutions based on consensus to a relativist what is right and wrong depends on the consensus of the group and that can change.


Note: utilitarianism is a moral philosophy that takes as morally acceptable an action as a promotion.


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