Create a new account

It's simple, and free.

Accountants on the Front Line

The Sarbanes-Oxley Act introduced many new issues and regulations into the management of public corporations. Although much of the regulation concerned the activities of financial accountants, it is the daily tasks of management accountants that are most effected. "Sarbanes-Oxley affects our members because they're on the front lines in terms of implementing the act's requirements" ("Looking into the Future with Institute of Management Accountants Chair Kim R. Wallin, CMA CFM, CPA," 2003). The challenge for the Institute of Managerial Accountants has been to advise its members on the best ethical courses of action while assuring that the government oversight of the financial accounting profession does not interfere with a management accountant's ability to perform his or her duties.

The Standards of Ethical Conduct for members of the Institute of Management Accountants are outlined in SMA 1C. Thex include four main categories of ethical issues: competence, confidentiality, integrity, and objectivity. The IMA has also set up a member hotline, as well as becoming more involved in the business education process, to help IMA members know what to do when ethical issues arise.

Competence is the first responsibility of a managerial accountant. Through continuing education, both formal and informal, members are to keep their knowledge current on issues such as laws, regulations, and accounting standards applicable to their field of business. For example, if an IMA member is hired to sit on a board of directors, it is that accountant's duty to familiarize themselves both with the PCAOB standards applicable to members of a board as well as the financial reporting issues specific to that company. Managerial accountants must also prepare their reports, recommendations, and presentations in a complete and understandable matter, for accounting is in essence an information field.

...

Page 1 of 4 Next >

More on Accountants on the Front Line...

Loading...
APA     MLA     Chicago
Accountants on the Front Line. (1969, December 31). In LotsofEssays.com. Retrieved 14:12, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1706678.html