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.

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Definitions:

Performance

The act of carrying out or performing a task, operation, or function, usually measured against a set standard or expectation.

Measure

A method or tool used to assess or quantify characteristics, outcomes, or performances.

Leadership Processes

The methods and activities through which leadership is exercised, including decision-making, motivating, and directing team members.

Motives

The internal drives, desires, or needs that prompt individuals to act or behave in certain ways.