Site MapHelpFeedbackManagerial Accounting as a Career
Managerial Accounting as a Career
(See related pages)

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif::::/sites/dl/free/0073022853/lo10.gif','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>
Discuss the professional organizations, certification process, and ethical standards in the field of managerial accounting.

Managerial accountants serve a crucial function in virtually any enterprise. As the providers of information, they are often in touch with the heartbeat of the organization. In most businesses, managerial accountants interact frequently with sales personnel, finance specialists, production people, and managers at all levels. To perform their duties effectively, managerial accountants must be knowledgeable not only in accounting but in the other major business disciplines as well. Moreover, strong oral and written communication skills are becoming increasingly important for success as a managerial accountant.

Professional Organizations

“You’ve got to know how to talk to people, express yourself. And that’s oral and written. You also have to be able to understand a lot of different areas, not necessarily just accounting. You’ve got to understand the business itself.” (1k)

Qwest

To keep up with new developments in their field, managerial accountants often belong to one or more professional organizations. The largest of these is the Institute of Management Accountants (IMA). The IMA publishes two journals, entitled Management Accounting Quarterly and Strategic Finance, and it also has published many research studies on managerial accounting topics. Other professional organizations in which managerial accountants hold membership include the Financial Executives Institute, the American Institute of Certified Public Accountants, the Institute of Internal Auditors, and the American Accounting Association.

The primary professional association for managerial accountants in Canada is the Society of Management Accountants of Canada (La Société des Comptables en Management du Canada). Great Britain’s main professional organization is the Institute of Chartered Management Accountants, and Australia’s organization is the Institute of Chartered Accountants in Australia. In all, over 75 countries have professional organizations for their practicing accountants.

Professional Certification

In keeping with the importance of their role and the specialized knowledge they must have, managerial accountants can earn a professional certification. In the United States, the IMA administers the Certified Management Accountant (CMA) program. The requirements for becoming a Certified Management AccountantAn accountant who has earned professional certification in managerial accounting. include meeting specified educational requirements and passing the CMA examination.15 In Canada, a managerial accountant may be certified as a Registered Industrial Accountant (RIA) by the Society of Management Accountants of Canada. Great Britain and many other countries also have professional certification programs for their managerial accountants.

Professional Ethics

As professionals, managerial accountants have an obligation to themselves, their colleagues, and their organizations to adhere to high standards of ethical conduct. In recognition of this obligation, the IMA has developed the following ethical standards for its members, who are practitioners of managerial accounting and financial management.16 Note: Various problems and cases at the end of each chapter in this text include ethical issues to be resolved. In addressing those issues, readers will need to refer to these ethical standards.

Focus on Ethics These scenarios discuss ethical issues and underscore the importance of ethical behavior in managerial accounting.

Focus  on Ethics

IMA STATEMENT OF ETHICAL PROFESSIONAL PRACTICE

Members of IMA shall behave ethically. A commitment to ethical professional practice includes overarching principles that express our values and standards that guide our conduct.

   Principles

IMA’s overarching ethical principles include: Honesty, Fairness, Objectivity, and Responsibility. Members shall act in accordance with these principles and shall encourage others within their organizations to adhere to them.

   Standards

A member’s failure to comply with the following standards may result in disciplinary action.

   Competence

Each member has a responsibility to:

  1. Maintain an appropriate level of professional expertise by continually developing knowledge and skills.
  2. Perform professional duties in accordance with relevant laws, regulations, and technical standards.
  3. Provide decision support information and recommendations that are accurate, clear, concise, and timely.
  4. Recognize and communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity.

   Confidentiality

Each member has a responsibility to:

  1. Keep information confidential except when disclosure is authorized or legally required.
  2. Inform all relevant parties regarding appropriate use of confidential information. Monitor subordinates’ activities to ensure compliance.
  3. Refrain from using confidential information for unethical or illegal advantage.

   Integrity

Each member has a responsibility to:

  1. Mitigate actual conflicts of interest. Regularly communicate with business associates to avoid apparent conflicts of interest. Advise all parties of any potential conflicts.
  2. Refrain from engaging in any conduct that would prejudice carrying out duties ethically.
  3. Abstain from engaging in or supporting any activity that might discredit the profession.

   Credibility

Each member has a responsibility to:

  1. Communicate information fairly and objectively.
  2. Disclose all relevant information that could reasonably be expected to influence an intended user’s understanding of the reports, analyses, or recommendations.
  3. Disclose delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law.

Problems  1-31, 1-32

Case  1-33



15For information about the CMA program, write to the Institute of Management Accountants, 10 Paragon Drive, Montvale, NJ 07645-0405, or visit their Web site at imanet.org.
16In 2005, the Institute of Management Accountants (IMA) revised its Statement of Ethical Professional Practice. See Curtis C. Verschoor, “Do the Right Thing,” Strategic Finance, 87, no. 5 (November 2005), pp. 42–46.






To learn more about the book this website supports, please visit its Information Center.
(c)2008 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Notice.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


Managerial AccountingOnline Learning Center

Home > Chapter 1 > Managerial Accounting as a Career