US CMA Part 2 · Chapter 9 · Question 8 of 23
A management accountant believes her immediate supervisor is involved in manipulating inventory counts. Company policy has not resolved the issue. According to IMA guidance, what should she do next?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Present the issue to the next level of management above her supervisor
Explanation
The IMA statement says the resolution process could include a discussion with the immediate supervisor, but if the supervisor appears to be involved, the issue could be presented to the next level of management. Ignoring the issue is not acceptable, and going to the press would breach the Confidentiality standard, which requires information to be kept confidential except when disclosure is authorized or legally required.
More Professional ethics MCQs
- Q10A management accountant wants to clarify whether a situation she faces is an ethical violation before taking action. Under IMA guidance…
- Q11The chief financial officer of a company reports directly to the chief executive officer. The CFO discovers that the CEO has been…
- Q12What are the three elements of the fraud triangle?
- Q13Which element of the fraud triangle can management most directly reduce by designing and enforcing strong internal controls?
- Q14A payroll clerk who has been diverting small amounts tells herself, "The company underpays me, and I'm only borrowing what I'm owed; I'll…