Ethics in Managerial Accounting

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The current economic conditions have tested the role of managerial accountants, challenging them to remain independent in mind and spirit when contributing to the decision-making processes of a business. Maintaining ethical standards and adhering to rules set by governing bodies at the local, state, and federal levels are needed to ensure both client and public trust.

Instructions

To complete this assignment, prepare a 4–5-page paper in which you address the following:

• Identify the accounting governing bodies in your state and describe their role as it applies to setting ethical behavior and the fiduciary duties of a managerial accountant.
• Research the accounting industry and select a case from within the last three years in which ethical accounting standards were compromised. Describe the ethical violation(s) outlined in the case.
• Propose internal controls that should have been in place to prevent an ethical violation.
• After assessing the case you selected, describe how your thinking on the importance of ethics in managerial accounting has evolved during the course of this term.
• Use three sources to support your writing. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source slide at least one time within your assignment. For help with research, writing, and citation, access the library or review library guides.

This course requires the use of Strahttps://skilledpapers.com/%22https://library.strayer.edu/guides/%22yer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course.

• Assess the importance of ethics in managerial accounting.

 

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Struggling with where to start this assignment? Follow this guide to tackle your assignment easily!

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Step 1: Understand the Assignment

You need to write a 4–5-page paper that:

1. Identifies accounting governing bodies in your state and their role in setting ethical behavior and fiduciary duties for managerial accountants.
2. Researches an ethical violation case within the last three years, describing the violation(s).
3. Proposes internal controls that could have prevented the ethical violation.
4. Reflects on how your thinking about ethics in managerial accounting has evolved throughout the course.
5. Uses three credible sources to support your arguments.

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Step 2: Identify Accounting Governing Bodies in Your State

1. Research the governing bodies:
   • In your state, research which accounting governing bodies regulate the practice of managerial accountants. For example, these could include:
     • The American Institute of Certified Public Accountants (AICPA): National, but with state-specific chapters.
     • The State Board of Accountancy: Every state has its own board of accountancy.
     • The Institute of Management Accountants (IMA): Professional organization relevant for managerial accountants.
   • Find the specific rules, guidelines, and codes of ethics they set regarding the duties of a managerial accountant. Explain how these bodies ensure ethical behavior and uphold fiduciary duties.

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Step 3: Select a Recent Ethical Accounting Case

1. Choose a case:
   • Search for recent news or case studies related to ethical violations in accounting within the last three years. Look for examples where ethical accounting standards were compromised.
     Examples of sources include:
     • News outlets (e.g., Bloomberg, The Wall Street Journal)
     • Accounting journals or publications
     • Legal cases related to accounting violations

   Common ethical violations in managerial accounting include:

   • Financial statement fraud (misrepresentation of financial data)
   • Conflict of interest (e.g., an accountant influencing a decision that benefits them personally)
   • Improper revenue recognition
   • Inaccurate cost allocation or fraud
2. Describe the case:
   • Provide a summary of the case.
   • Detail the ethical violation(s) that occurred.
   • Explain how the violation affected the organization, clients, or the public.

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Step 4: Propose Internal Controls

1. Internal controls:
   • Propose specific internal controls that could have been implemented to prevent the ethical violation in your selected case.
   • Internal controls could include:
     • Segregation of duties: Ensure no individual has control over both authorizing and recording financial transactions.
     • Regular audits: Implement frequent and independent audits to detect fraudulent activities.
     • Clear ethical guidelines: Establish and enforce a written code of ethics.
     • Whistleblower protection: Create an anonymous reporting system for employees to report unethical behavior.
     • Training programs: Educate employees on ethical standards and the consequences of violations.

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Step 5: Reflect on How Your Thinking Has Evolved

1. Reflect on your learning:
   • Describe how your understanding of ethics in managerial accounting has evolved throughout the course.
   • Discuss whether your views on the importance of ethics in accounting have changed as you learned about real-life cases and internal controls.
   • Consider how ethics play a role in ensuring trustworthiness and accountability in the financial reporting process.

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Step 6: Compile Your Paper

• Introduction:
  • Introduce the importance of ethics in managerial accounting.
  • Briefly outline what the paper will cover (governing bodies, case study, internal controls, personal reflection).
• Body:
  1. Governing bodies: Identify and explain the role of accounting governing bodies in your state.
  2. Ethical violation case: Describe the selected case and explain the ethical violations.
  3. Internal controls: Propose relevant internal controls to prevent future violations.
  4. Reflection: Discuss how your thinking about ethics in managerial accounting has evolved.
• Conclusion:
  • Summarize the key points.
  • Reiterate the importance of ethical behavior and internal controls in managerial accounting.

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Step 7: Cite Your Sources

• Use three credible sources (including textbooks, journals, news articles, or legal cases) to support your discussion.
• APA format: Ensure you use APA formatting for both in-text citations and the reference list.
  • Example citation format for a book:
    • Author, A.A. (Year). Title of the book. Publisher.
  • Example citation for a journal article:
    • Author, A.A. (Year). Title of the article. Title of the Journal, Volume(Issue), page numbers. DOI/URL

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Step 8: Review and Edit

• Review your paper: Check for clarity, logical flow, and adherence to the assignment guidelines.
• Edit for grammar and formatting: Ensure you’ve followed APA format and check for spelling or punctuation errors.
• Ensure proper page count: Your paper should be 4–5 pages in length (not including the title and reference pages).

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