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:

Mitochondria

are organelles within cells that produce energy through cellular respiration, often referred to as the powerhouses of the cell.

Fructose

A simple sugar found in many plants and fruits, often used as a sweetener in food and beverages due to its high sweetness relative to glucose.

Epididymis

Location of sperm maturation in an adult human male; located in the testis.

Vas Deferens

Also called the ductus deferens; storage location for mature sperm before they pass into the ejaculatory duct.