The bearers of the title Certified Management Accountants (CMA’s) have professional rights and responsibilities that they must adhere to as part of their career. In addition to these rights and responsibilities, there are ethical responsibilities and obligations that are expected of them by the society and, more so, the Institute of Certified Management Accountants. This paper endeavors to focus on the ethical responsibilities and obligations of CMA’s and how they differ from the obligations of financial accountants.
Confidentiality is one key ethical responsibility needed of a Certified Management Accountant. Accountants rely on the private information that concern their clients. This information is not subject unauthorized to disclosure to anyone since the clients can suffer competition disadvantage. The accounting code of conduct requires accountants to refrain from sharing client information and avoiding unauthorized disclosure of this information. The relationship between an accountant and a client does not have the privilege of retaining privy information as in the case of attorney and client relationship. A court order may make a declaration that an accountant has to divulge the business dealings with the client.
Another key ethical responsibility is integrity. Integrity is important in upholding regular communication with business associates to avoid apparent conflict of interest. All parties are to be advised of any potential conflicts that may arise in the undertaking of business deals. Accountants should refrain from actions that could cause damage by carrying out duties ethically. Furthermore, they should not engage or support any activity that may taint their professional image.
Independence may not sound like an obligation, but it is, in fact, an ethical responsibility in business. An accountant should render a sound opinion based on the financial statements of a company. An accountant should not have any interest any form of close interest with the client in a manner to jeopardize the process of audit. Any external party should perceive the relationship between a client and the auditor as one that has independence. It is crucial for their relationship to appear independent and neutral that does not have any impairment.
The accountants that render their professional service to the public must maintain high ethical standards. The public accountants are in a fiduciary relationship with the employer and are responsible to perform their duties by observing integrity and due care. People expect the professionals to maintain high ethical standards since, as professionals, they have a commitment towards the public interest.
The nature of the accounting work places them in a position of reliance and trust. This calls for professional judgment and accuracy when making decisions bearing in mind the public relies with their findings and opinions concerning financial statements. The decision they make affect the public decisions and reflect on the economy. The auditing procedures must be well completed and documented. Accountants should not falsify information since this can endanger their competence as professionals.
There is no tangible or significant difference between the ethical responsibilities and obligations of management accountants and obligations of financial accountants. The primary difference between the management accountants and the financial accountants, in terms of ethical obligations, is that the former are expected to uphold confidentiality while the latter are supposed to uphold full disclosure because the information that they deal with is meant for both internal and external stakeholders. Secondly, the financial accountants, unlike the management accounts cannot work independently as they are to work hand in hand with the internal and external auditors in ensuring that the financial statements of indicate a true and fair state of the business' affairs.
