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:

Monogamous

A relationship model or practice involving a romantic or sexual partnership between two individuals exclusively.

Birth Control Pills

Oral contraceptives used to prevent pregnancy, containing hormones that inhibit ovulation and modify the uterine lining.

Sexually Transmitted Infections

Infections spread primarily through sexual contact, including viruses, bacteria, and parasites, often requiring medical treatment.

Pregnancy

The condition of having a developing embryo or fetus in the uterus, marked by various physical and hormonal changes.