Suppose a Management Accountant Becomes Aware That a Poor Judgment

question 50

Multiple Choice

Suppose a management accountant becomes aware that a poor judgment he or she made has resulted in the loss of one of the company's clients. Is the accountant bound to share this information with the company? (The accountant doubts that the company will ever find out about it directly.)

• A) The management accountant is bound to honestly respond to inquiries regarding the adequacy of professional judgments but is not bound to communicate them if not directly asked.
• B) The management accountant is bound to communicate this error in judgment only if another client cannot be found.
• C) The management accountant is not bound to communicate this error.
• D) The management accountant is bound to communicate unfavorable and favorable judgments made even if not directly asked.

---

Definitions:

Assurance

A positive declaration intended to give confidence; a promise or pledge guaranteeing quality or reliability.

Well-Written

Refers to text that is clearly articulated, grammatically correct, and effectively communicates its intended message.

Buffer

A balanced initial remark in a softly conveyed negative message that builds rapport with the audience without disclosing the primary concept.

Relevant

Closely connected or appropriate to the matter at hand.