The American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct consists of statements developed by the AICPA to provide the profession's ethical framework. The code of conduct promotes several ethical principles such as integrity, due care, and objectivity, among others (AICPA, 2014). On the other hand, the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice provides the ethical structure for managerial accountants. The statement encourages ethical practices such as fairness, honesty and responsibility among the professionals.
Comparison between IMA Statement of Ethical Professional Practice and the AICPA Code of Professional Conduct and their Effectiveness
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The two codes of professional conduct are similar in that they promote effectiveness and integrity among the professionals. The AICPA Code of conduct provides the guiding principles on serving the public interest, Integrity, Responsibilities, due care, Scope and nature of services, Objectivity and Independence (AICPA, 2014). Members of the AICPA are therefore expected to follow these guidelines as they execute their professional mandate. The IMA code of conduct sets the ethical standards for the management accountants. Ethical values such as confidentiality, credibility, integrity and competence are encouraged (IMA, 2017).
However, the codes target accountants at different professional levels. The AICPA code guides Certified Public Accountants (CPAs) while the IMA provides ethical guidelines to managerial accountants who are either licensed or non-licensed. (Jenkins, Popova, et al., 2020)The IMA statement's primary focus is to enhance integrity among the members, whereas the AICPA largely enhances members' professional behavior regarding public interests (IMA, 2017). The AICPA Code of professional conduct is also more detailed than the IMA statement in describing each code of conduct. Therefore, the AICPA code of professional conduct is more effective in upholding professionalism among the accountants.
Some of the aspects of a managerial accountant’s job that can be challenged ethically include confidentiality, competency and credibility. A management accountant has the responsibility of ensuring that the accounting information remains confidential. The accountant should not use such information for personal gain. It is also vital for the managerial accountant to convey important information to other levels of the organization. Such information should not be biased and ethical standards should be upheld to maintain credibility. The professional should uphold the principles stipulated by the Code of Conduct and other professional guidelines. This ensures they remain competent.
If I realize a managerial accountant does not uphold such ethical standards, I will take up the matter with the immediate supervisor provided he or she upholds integrity. I would ensure that the organization's policy and IMA ethical standards are maintained as the accountant performs their duties. Imparting knowledge about the expected ethical standards and the consequences of their violation would also be crucial in dealing with the situation.
Response to Brenda Quiles-Borrero Post
Hello Brenda,
I’m glad that you have managed to sail through despite the setbacks. I agree with your post that keeping an organization’s information confidential is one of the ethical issues a management accountant is likely to face. It would be totally unethical for accountants to use vital company information for personal gain by virtue of the offices they hold. I also correspond that despite their slight differences, the IMA Statement of Ethical Professional Practice and the AICPA code of professional conduct are structured to promote ethical behavior among professionals.
Thank you!
References
AICPA. (2014). Professional responsibilities . https://www.aicpa.org/interestareas/personalfinancialplanning/resources/practicecenter/professionalresponsibilities.html
IMA. (2017). IMA statement of ethical professional practice . https://www.imanet.org/insights-and-trends/business-leadership-and-ethics/ima-statement-of-ethical-professional-practice?ssopc=1
Jenkins, J. G., Popova, V., & Sheldon, M. D. (2020). Monitoring the accounting profession under the AICPA code of professional conduct: An analysis of state board of accountancy participation. Journal of Accounting and Public Policy , 39 (3), 106742.
