Free IMA CMA Part 2 (Strategic Financial Management) Professional Ethics Practice Questions
Professional Ethics on CMA Part 2 covers the IMA Statement of Ethical Professional Practice (competence, confidentiality, integrity, credibility), resolution of ethical conflicts, fraud risk, and the regulatory landscape including the Foreign Corrupt Practices Act, anti-money-laundering rules, and whistleblower protections.
Sample Questions
Question 1
Easy
Which obligation is imposed on IMA members by the Integrity standard?
Solution
A is correct. The Integrity standard requires members to mitigate actual conflicts of interest, regularly communicate with business associates to avoid apparent conflicts, refrain from engaging in any conduct that would prejudice the ability to carry out duties ethically, and abstain from activities that would discredit the profession.
Question 2
Medium
A CMA candidate accepts a new role analyzing complex derivative hedges, an area in which she has limited experience. Which IMA standard is MOST directly implicated, and what is the appropriate response?
Solution
A is correct. The Competence standard requires members to maintain an appropriate level of professional expertise by continually developing knowledge and skills, perform duties in accordance with relevant laws and standards, and provide decision support that is accurate, clear, concise, and timely. Accepting work in an unfamiliar technical area triggers the obligation to either obtain training or recognize professional limitations and decline.
Question 3
Hard
A controller learns that the CFO has instructed staff to capitalize routine maintenance costs to meet a debt covenant. After exhausting internal escalation up to the audit committee without resolution, and after consulting an objective advisor and her own attorney, the controller still believes the practice is materially misleading. Under the IMA Statement of Ethical Professional Practice, what is her appropriate course of action?
Solution
B is correct. When all internal levels of review have been exhausted without resolution of an unethical issue, the IMA guidance indicates that resignation may be the only remaining alternative, accompanied by an informative memorandum to an appropriate representative of the organization. Communication with parties outside the organization is generally not appropriate unless legally required, which is why the controller should rely on legal counsel before any external disclosure. This sequence preserves Integrity and Credibility while respecting Confidentiality.