US CMA Part 2 · Chapter 9 · Question 4 of 23
A cost accountant learns from internal reports that his company will soon announce an unexpected loss. He sells his shares in the company before the announcement. Which IMA standard has he most directly violated?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Confidentiality
Explanation
The Confidentiality standard requires members to keep information confidential except when disclosure is authorized or legally required, and to refrain from using confidential information for unethical or illegal advantage. Trading on non-public company information also likely breaches securities laws on insider trading.
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