Scott is a management accountant in a large company.Scott observed unethical behavior by a coworker who is also a management accountant.The coworker is a relative of the company's president and he always receives preferential treatment.Scott observed the coworker putting office supplies and small pieces of electronic equipment in his briefcase.According to the IMA,what course of action should Scott take?

Question

Quizplus · Accepted Answer

The IMA's Statement of Ethical Professional Practice requires management accountants to report ethical violations to their immediate supervisor, unless the supervisor is involved in the violation or the violation involves accounting or auditing issues. In this case, the coworker's theft of office supplies and equipment constitutes an ethical violation that should be reported. Reporting the observation to the police or the Securities and Exchange Commission is not necessary at this point, and failing to take any action would be a violation of the IMA's ethical standards.

Scott Is a Management Accountant in a Large Company