Code of conduct for Management Accountants

Practitioners of management accounting and financial management have an obligation to the public, their profession, the organization they serve, and themselves, to maintain the highest standards of ethical conduct. In recognition of this obligation, the Institute of management Accountants has promulgated the following standards of ethical conduct for practitioners of management accounting and financial management. Adherence to these standards internationally is integral to achieving objective of management accounting.

Competence

Practitioners of management accounting and financial management have a responsibility to:

* Maintain an appropriate level of professional competence by ongoing development of their knowledge and skills.
* Perform their professional duties in accordance with relevant laws, regulations and technical standards.
* Prepare complete and clear reports and recommendations after appropriate analysis of relevant and reliable information

Confidentiality:

Practitioners of management accounting and financial management have a responsibility to:

* Refrain from disclosing confidential information acquired in the course of their work except when authorized, unless legally obligated to do so.
* Inform subordinates as appropriate regarding the confidentiality of information acquired in the course of their work and monitor their activities to assure the maintenance of that confidentiality
* Refrain from using or appearing to use confidential information acquired in the course of their work for unethical or illegal advantage either personally or through third parties.

Integrity

Practitioners of management accounting and financial management have a responsibility to:

* Avoid actual or apparent conflicts of interest and advise all appropriate parties of any potential conflict.
* Refrain from engaging in any activity that would prejudice their ability to carry out their duties ethically.
* Refuse any gift, favor, or hospitality that would influence or would appear to influence their actions.
* Refrain from either activity or passively subverting the attainment of the organization's legitimate and ethical objectives.
* Recognize and and communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity.
* Communicate unfavorable as well as favorable information and professional judgment or opinion.
* Refrain from engaging or supporting any activity that would discredit the profession.

Objectivity:

Practitioners of management accounting and financial management have a responsibility to:

* Communicate information fairly and objectively
* Disclose fully all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, comments, and recommendations presented.

Practitioners may encounters conflict in applying the above ethics, resolutions are suggested here.

Resources:
Managerial Accounting Articles
Managerial Accounting, Ray H. Garrison Eric W. Noreen
Cost Accounting, Adolph Matz Milton F. Usrey
Advanced Financial Accounting M. A. Ghani
http://www.accountingformanagement.com/