The managerial accountant reviews the report from the internal audit function that ensures the company's internal controls and risk management policies are functioning properly
According to the report, there were discrepancies in the internal controls that are not in conformance with the organizational policy and applicable law. The managerial accountant suspects that the CEO is embezzling $30,000 per quarter. What should the managerial accountant do about this discrepancy? If the accountant fails to act on this issue, what standard according to the IMA Statement of Ethical Professional Practice does the accountant violate?
What will be an ideal response?
Since the CEO oversees the operations, the management accountant cannot bring this matter to the attention to the CEO since the management accountant suspects that the CEO is embezzling funds from the organization. The management accountant should call the EMAs confidential "Ethics Hotline" and discuss the dilemma. The management accountant should also consult an attorney regarding the legal obligations and rights. If the management accountant does not report this incident, the management accountant violates the IMA Statement of Ethical Professional Standard of credibility.
You might also like to view...
As with normal distributions, there are numbers that you can memorize that allow you to determine if a chi-square value is significant
Indicate whether the statement is true or false
Monsanto operates in many businesses, including pharmaceuticals and food products. The company defines its ________ as creating "abundant food and a healthy environment."
A) strategy B) marketing development C) business portfolio D) value-delivery network E) mission