A controller is told by the CFO to defer recognizing $2M of warranty expense to hit quarterly EPS. The standards, the resolution steps, and the fraud framework that turn this from a feeling into a documented response are the heart of Part 2 Section F.
The IMA Statement of Ethical Professional Practice is the spine of every Part 2 Section F question. Memorize the structure first, the words second.
The four overarching principles name the values members commit to: Honesty, Fairness, Objectivity, Responsibility. They describe character. The four standards translate those values into testable conduct: Competence, Confidentiality, Integrity, Credibility. They describe behavior the exam can audit against a fact pattern.
KEY: The four principles are values, the four standards are rules. The exam tests violations against the standards (Competence / Confidentiality / Integrity / Credibility), not the principles.
When the exam hands you a vignette, work the four standards in order. Each one is a tripwire:
- Competence violated? Has the accountant prepared analysis without adequate skill, ignored a new GAAP pronouncement, or hidden a known limitation?
- Confidentiality violated? Has insider data been shared, used for personal trades, or leaked to a subordinate who was not informed of the obligation?
Common mistakes
- Citing "the IMA Code" without naming the standard. The exam wants Competence, Confidentiality, Integrity, or Credibility by name, tied to the specific fact.
- Going external before going internal. Notifying regulators, the press, or customers as the first step violates Confidentiality. Internal escalation through the chain comes first.
- Skipping the supervisor when the supervisor is not involved. The first conversation is with the immediate supervisor unless they are the source of the conflict.
Bottom line
- The IMA Statement of Ethical Professional Practice has four overarching principles (Honesty, Fairness, Objectivity, Responsibility) and four standards (Competence, Confidentiality, Integrity, Credibility).
- Cite the named standard tied to the specific fact, not a vague 'unethical' label; violations are framed against standards, not principles.
- Resolution chain: immediate supervisor first (skip only if they are involved), then next level, then audit committee or board, with IMA Ethics Helpline and personal legal counsel running parallel.
- The Fraud Triangle (Cressey) has three legs: Pressure / Incentive, Opportunity, Rationalization. Remove any one and fraud collapses; controls directly attack Opportunity.
Exam shortcut
When a vignette describes biased reporting, manipulated forecasts, or padded budgets, the answer almost always cites Credibility (fair communication, full disclosure) and Integrity (refrain from conduct that discredits the profession). Pair them. When the question asks for the first step in resolving a dilemma, pick discuss with the immediate supervisor unless the supervisor is involved. External parties are never the first step.
The full lesson (about 2,120 words, 14 min read) adds 2 worked examples, all 6 common mistakes, a self-check, free in the app.
Learning objectives
- 2F2
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