If a management accountant confides to a relative that his or her company has a confidential plan to merge with another company in the near future, the accountant has
A) not violated ethical standards.
B) violated ethical standards only if the relative owns stock in the company.
C) violated ethical standards because the accountant and relative could stand to gain personally from that information.
D) not violated ethical standards because the information was relayed to a family member.

Question

Quizplus · Accepted Answer

The management accountant has violated ethical standards because he or she has revealed confidential information to a relative, who could potentially benefit personally from that information. It does not matter whether the relative owns stock in the company or not, the disclosure of confidential information is unethical.

If a Management Accountant Confides to a Relative That His