All the members of the Institute of Management Accountants or all the managerial accountants (CMA) have to work in accordance with the principles and standards laid down by the Institute of Management Accountants to cope with the ethical challenges.
The Institute of Management Accountants is a worldwide association of financial accountants and other financial professionals. It is one of the largest worldwide associations which set standards for managerial accounting. This association is a reputed association that focuses on the profession of accounting by laying down the highest ethical business practices.
Competence: According to this standard of ethical conduct, managerial accountants have to be competent enough to cope with the requirements of the Institute of Management Accountants. The managerial accountants have to enhance their professional skills and knowledge to perform their work with professionalism and maintain their level of knowledge with professional expertise. Furthermore, the managerial accountants have to perform their duties according to the prevailing laws, rules and regulations, and the relevant accounting standards.
Confidentiality: The second standard of ethical conduct for managerial accountants is to maintain confidentiality with their clients. This ethical standard provides that the information that the clients provide to the managerial accountants must be handled with confidentiality. Such information can only be disclosed if the managerial accountants are authorized to do so. It becomes the obligation of the managerial accountant to inform all parties about the use of such important information.
Integrity: The third standard of ethical conduct for managerial accountants is integrity. According to standards, managerial accountants are supposed to mitigate conflicts of interest. The accountants should therefore have proper communication with all business managers to reduce conflicts of interest. In addition, it becomes the duty of managerial accountants to stop themselves from getting into an activity that would lead them to perform their practice unethically.
Credibility: The fourth standard of ethical conduct for managerial accountants is credibility. It states that the information should be communicated fairly and objectively. In this ethical conduct, all the relevant information should be disclosed by the managerial accountants. Such information basically intends to influence the understanding of the users.
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