Ethics for Management Accountants Paper 4

1

The U.S. Foreign Corrupt Practices Act is particularly focused on the dealings of financial institutions and the safeguarding of the global financial system. Financial institutions must implement robust controls to ensure knowledge of their customers and the nature of their business transactions and be in a position to prove to regulators a high level of due diligence. These safeguards are required to minimize all of the following except






2

Corporations have the responsibility to issue financial statements that are timely, accurate, and transparent, reflecting all the transactions of the company. Which of the following documents refer to this responsibility?
I. IMA’s Statement of Ethical Professional Practice
II. SOX Section 406: Code of Ethics for Senior Financial Officers
III. IMA’s Statement on Management Accounting “Values and Ethics: From Inception to Practice”
IV. U.S. Foreign Corrupt Practices Act






3

Which of the following best describes an important provision of the U.S. Foreign Corrupt Practices Act?






4

Which one of the following statements best characterizes the provisions of the Foreign Corrupt Practices Act (FCPA)?






5

Which of the following issues is addressed by Section 406 of the Sarbanes-Oxley Act?
I. Full, fair, timely, and accurate financial statement disclosure.
II. Whistleblower protection.
III. Form 8-K disclosure of changes to the Ethics Code for Senior Financial Officers.
IV. Compliance with the U.S. Foreign Corrupt Practices Act.
V. Reporting the existence of an Ethics Code for Senior Financial Officers.






6

Which one of the following is a true statement regarding organizational ethics?






7

IMA’s Statement on Management Accounting, “Values and Ethics: From Inception to Practice,” recommends a defined code of conduct and ethical behavior for all organizations. One advantage of having such a code is that it






8

Which one of the following is a true statement regarding organizational ethics?






9

A company’s code of conduct states, “Our employees are our most valuable asset.” Which one of the following policies best illustrates that management strives to provide leadership by example in ethical matters concerning employees?






10

Which of the following statements describe the importance of a whistleblowing framework in maintaining an ethical organizational culture?
I. It provides measurable feedback for determining whether employees are following a code of ethics.
II. It creates opportunities to enhance and improve internal controls.
III. It empowers management to become better role models for employees.
IV. It helps to identify potential errors or risks at each task level within the organization.






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