Which of the following accurately describes the managerial accountants' professional environment and ethical responsibilities?
A)Stockholders have an ethical responsibility to report accurately even when their own compensation suffers.
B)Financial analysts have an ethical responsibility to report accurately even when their own compensation suffers.
C)Managers have an ethical responsibility to report accurately even when their own compensation suffers.
D)Managers do not have an ethical responsibility to report accurately even when their own compensation suffers.

Question

Quizplus · Accepted Answer

Managerial accountants have an ethical responsibility to report accurately even when their own compensation suffers. They have a duty to provide relevant and reliable information to stakeholders for informed decision-making. Failure to do so can result in negative consequences not only for the organization but also for the accountant's professional reputation and credibility. Therefore, managers should prioritize their ethical responsibilities over their personal interests. Option A and B are incorrect as they are not related to managerial accountants. Option D is incorrect as it contradicts professional and ethical standards for management accountants.

Which of the Following Accurately Describes the Managerial Accountants' Professional