Which of the Following Events Would NOT Be Considered Unethical

question 90

Multiple Choice

Which of the following events would NOT be considered unethical under IMA standards?

• A) A bank hired a bookkeeper to review foreclosure documents who had no training or experience in the area.
• B) An accountant was supposed to take continuing education courses but fell behind and was not current on important new developments in his industry.
• C) An accountant who had no background in internal control or finance was promoted to the position of controller.
• D) An accountant who had just successfully completed an in-house training course in management accounting made a large error in the year-end expense reports.

---

Definitions:

Information Content Effect

The market reaction attributed to announcements or news, which signals new information to investors about a company’s value.

Corporate Dividend Payout

The portion of a company's earnings that is distributed to shareholders in the form of dividends.

Firm's Earnings

The net profit a company achieves in a given period, calculated as revenues minus costs and expenses before taxation.

Information Content Effect

A market phenomenon where stock prices adjust in response to the news contained in a company announcement, suggesting the news has value for investors’ decisions.