Professional Ethics: CMA Exam 2 - Section F

Author: Tom Coghlan

Tom Couglan explains the Fraud Triangle model, as well as ethical considerations for organizations and management accounting professionals.

Whether you take the CMA exam or not, using your CPE credits to review the material tested on the Certified Management Accountant exam will help you to close the skills gap and move from compiling and reporting the results to a seat at the management table.

For more than 40 years, the CMA (Certified Management Accountant) certification has been the global benchmark for management accountants and financial professionals. Why? Because CMAs can explain the "why" behind numbers, not just the "what." And that can give you greater credibility, higher earning potential, and ultimately a seat at the leadership table.

Using CPE credits to prepare for the Certified Management Accountant (CMA) exam is a pathway to a more successful business career: one that opens doors, builds confidence, closes skills gaps, and lets you tap into a network of 85,000 professionals around the globe.

The CMA certification complements other credentials or degrees and tests for analytical and critical-thinking skills not covered in other exams. About one in three active CMAs in the U.S. are also CPAs.

The Certified Managerial Accountant (CMA) designation delivers:
1) The ability to see the big picture, both operational and financial.
2) The know-how to leverage technology, especially as it relates to gathering and analyzing data.
3) Insight into financial implications of business decisions and the ability to communicate them in way that is clear and jargon-free.

Publication Date: April 2017

Designed For
Financial officers, controllers and chief financial officers; financial, managerial and cost accountants; financial and business analysts; budget managers and analysts; risk managers; chief information officers and information technology professionals.

Topics Covered

• Ethical Considerations for Management Accounting Professionals
• The Fraud Triangle
• Ethical Considerations for Organizations

Learning Objectives

• Using the standards outlined in the IMA's Statement of Ethical Professional Practice: -Identify and describe the four overarching ethical principles. -Evaluate a given business situation for its ethical implications -Identify the relevant ethical standards that may have been violated in a given situation and --explain why the standard is applicable -Recommend the appropriate course of action for management accountants to take when confronted with ethical dilemmas. -Evaluate and propose resolutions for ethical issues such as manipulation of results, standards, analysis and budgets.
• Define fraud.
• Identify the three components of the Fraud Triangle model.
• Use the Fraud Triangle model to explain how management accountants can identify and manage the risk of fraud.
• Apply the relevant provisions of the IMA's Statement on Management Accounting, "Values and Ethics: From Inception to Practice" to typical business situations.
• Identify the purpose of the Foreign Corrupt Practices Act, and the practices that the Act prohibits.
• Discuss corporate responsibility for ethical conduct.
• Explain the importance for an organization to have a code of conduct.
• Distinguish between legal and ethical behavior.
• Demonstrate an understanding of the roles that "leadership by example" and "tone at the top" plays in determining an organization's ethical environment.
• Explain the importance of a whistle blowing framework (e.g., Ethics Helpline) to maintaining an ethical organizational culture.
• Identify the requirements of SOX Section 406 - Code of Ethics for Senior Financial Officers.
• Discuss the issues organizations face in applying their values and ethical standards internationally.

Level
Overview

Instructional Method
Self-Study

NASBA Field of Study
Regulatory Ethics (2 hours)

Program Prerequisites
None

Advance Preparation
None