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 relative could stand to gain personally from that information.
D)not violated ethical standards because the information was relayed to a family member only.

Question

Quizplus · Accepted Answer

The management accountant has violated ethical standards because the relative could use the confidential information for personal gain, such as by purchasing stock in the companies involved in the merger. Ethical standards require accountants to maintain confidential information and not disclose it to parties who could benefit from it.

If a Management Accountant Confides to a Relative That His