CMA Part 2 | Lesson 1-1: Ethics |
Lesson 1: Ethics, Fraud, and Risk Management
In this video, we will cover See Me Part Two Lesson One, which is about ethics, fraud,
and risk management. Section one is about ethics. First, we will discuss the three parts
of the IMA statement of professional practice. Second, we will talk about the text or the
statement or the paragraphs for the IMA statement of professional practice. Third, we
will talk about conflicts of interest.
Three Parts of the IMA Statement of Professional Practice
The IMA statement of ethical professional practice has three parts: overarching
principles, standards, and the resolution of ethical issues. Here is an acronym to help
you remember:
H4 or HFOR for overarching principles: H for honesty, F for fairness, O for objectivity, and R
for responsibility.
CCIC for standards: C stands for competence, the second C stands for confidentiality, I
stands for integrity, and the last C stands for credibility.
The resolution of ethical issues: Members can have a discussion with their immediate
supervisor or next-level management, call the IMA's anonymous helpline, or consult their
own attorney.
The IMA Statement of Professional Practice
The IMA statement of ethical professional practice includes the overarching principles
that express our values and standards that guide the member conduct. Members shall
behave ethically, act in accordance with the principles, and encourage others within
their organizations to adhere to them.
Conflicts of Interest
Conflicts of interest occur when there is a conflict with personal and official
responsibilities. Members need to mitigate actual and avoid apparent conflicts of
interest. If members encounter ethical issues, they can follow the established policy of
their organization, use the IMA's anonymous reporting system, or consult their own
attorney. If resolution efforts are not successful, members may consider disassociating
from the organization.
Conflict of Interest in Business Affairs
A conflict of interest in business affairs is material if it affects judgment, independence,
or objectivity. An apparent conflict of interest refers to situations or relationships that
could reasonably appear to involve a conflict of interest from other parties' point of
view. Here are some examples:
When a member has a substantial financial interest in a supplier, customer, or distributor,
it could affect their decisions.
Using privileged information gained from one's official position for personal gain could
negatively impact the business.
, To mitigate conflict of interest, companies can:
1. Provide a code of conduct that includes provisions to address conflict of interest situations.
2. Implement a policy for managers to disclose their financial affairs fully.
3. Implement a policy for prior notification of any transactions to address conflicts of interest.
4. Prohibit financial ties to any supplier, customer, or distributor.
5. Encourage employees to adhere to strong ethical behavior.
6. Implement policies prohibiting employees from accepting gifts, favors, or hospitality.
These methods can help prevent conflicts of interest and maintain ethical behavior in
business affairs.
Lesson 1-2: Corporate Ethics and
Legislation
CMA Part 2 Still Lesson 1: Ethics, Fraud,
and Risk Management
In this lesson, we will cover corporate ethics and
legislation, specifically the Foreign Corrupt Practices Act
of 1977 (FCPA) and the Sarbanes-Oxley Act of 2002
(SOX).
Foreign Corrupt Practices Act (FCPA)
The FCPA has two sets of provisions: accounting and
anti-bribery.
Companies must have a system of accounting that
includes book and records and a system of internal
control.
Companies are required to keep books, records, and
accounts to properly reflect transactions.
Companies are required to have a system of internal
controls over financial reporting to ensure that they
have properly designed internal controls that are
implemented and operating effectively.
No person subject to the FCPA's anti-bribery provisions
may offer or authorize corrupt payments to any
Lesson 1: Ethics, Fraud, and Risk Management
In this video, we will cover See Me Part Two Lesson One, which is about ethics, fraud,
and risk management. Section one is about ethics. First, we will discuss the three parts
of the IMA statement of professional practice. Second, we will talk about the text or the
statement or the paragraphs for the IMA statement of professional practice. Third, we
will talk about conflicts of interest.
Three Parts of the IMA Statement of Professional Practice
The IMA statement of ethical professional practice has three parts: overarching
principles, standards, and the resolution of ethical issues. Here is an acronym to help
you remember:
H4 or HFOR for overarching principles: H for honesty, F for fairness, O for objectivity, and R
for responsibility.
CCIC for standards: C stands for competence, the second C stands for confidentiality, I
stands for integrity, and the last C stands for credibility.
The resolution of ethical issues: Members can have a discussion with their immediate
supervisor or next-level management, call the IMA's anonymous helpline, or consult their
own attorney.
The IMA Statement of Professional Practice
The IMA statement of ethical professional practice includes the overarching principles
that express our values and standards that guide the member conduct. Members shall
behave ethically, act in accordance with the principles, and encourage others within
their organizations to adhere to them.
Conflicts of Interest
Conflicts of interest occur when there is a conflict with personal and official
responsibilities. Members need to mitigate actual and avoid apparent conflicts of
interest. If members encounter ethical issues, they can follow the established policy of
their organization, use the IMA's anonymous reporting system, or consult their own
attorney. If resolution efforts are not successful, members may consider disassociating
from the organization.
Conflict of Interest in Business Affairs
A conflict of interest in business affairs is material if it affects judgment, independence,
or objectivity. An apparent conflict of interest refers to situations or relationships that
could reasonably appear to involve a conflict of interest from other parties' point of
view. Here are some examples:
When a member has a substantial financial interest in a supplier, customer, or distributor,
it could affect their decisions.
Using privileged information gained from one's official position for personal gain could
negatively impact the business.
, To mitigate conflict of interest, companies can:
1. Provide a code of conduct that includes provisions to address conflict of interest situations.
2. Implement a policy for managers to disclose their financial affairs fully.
3. Implement a policy for prior notification of any transactions to address conflicts of interest.
4. Prohibit financial ties to any supplier, customer, or distributor.
5. Encourage employees to adhere to strong ethical behavior.
6. Implement policies prohibiting employees from accepting gifts, favors, or hospitality.
These methods can help prevent conflicts of interest and maintain ethical behavior in
business affairs.
Lesson 1-2: Corporate Ethics and
Legislation
CMA Part 2 Still Lesson 1: Ethics, Fraud,
and Risk Management
In this lesson, we will cover corporate ethics and
legislation, specifically the Foreign Corrupt Practices Act
of 1977 (FCPA) and the Sarbanes-Oxley Act of 2002
(SOX).
Foreign Corrupt Practices Act (FCPA)
The FCPA has two sets of provisions: accounting and
anti-bribery.
Companies must have a system of accounting that
includes book and records and a system of internal
control.
Companies are required to keep books, records, and
accounts to properly reflect transactions.
Companies are required to have a system of internal
controls over financial reporting to ensure that they
have properly designed internal controls that are
implemented and operating effectively.
No person subject to the FCPA's anti-bribery provisions
may offer or authorize corrupt payments to any
