You have examined your organization’s financial statements and determined that they present a number of significant items in a fraudulent manner. You know that you should report this situation to management but are concerned that reporting it might result in your employment being terminated. Failure to report this situation is a violation of which of the ethical standard(s) outlined in IMA’s Statement of Ethical Professional Practice?

Answer (A) is correct. The IMA’s Statement of Ethical Professional Practice’s ethical standard of credibility involves communicating information fairly and objectively; disclosing all relevant information that could reasonably be expected to influence an intended user’s understanding of the reports, analyses, or recommendations; and disclosing delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law. Credibility has been violated because presenting a number of significant items in a fraudulent manner does not communicate information fairly. The relevant information that could reasonably be expected to influence an intended user’s understanding is also not completely disclosed.