The Credibility Standard in the Statement of Ethical Professional Practice

question 36

Multiple Choice

The credibility standard in the Statement of Ethical Professional Practice of the IMA requires that an accounting professional should:

• A) Communicate information fairly and objectively
• B) Disclose all relevant information that might affect the intended user's understanding of the reports, analyses or recommendations
• C) Disclose delays or deficiencies in information, timeliness, processing or internal controls in conformance with organization policy and the law
• D) All of these

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Definitions:

Unequal Distribution

A situation where resources, wealth, or opportunities are not evenly shared among members of a society.

Median Earnings

The midpoint of income distribution, meaning that half of the workers earn more than this amount and half earn less.

Labor Market

A marketplace where employers and employees interact concerning the exchange of labor for compensation.

Compensating Differentials

Salary differences that reflect the desirability of the job itself or the cost of living in the area where the job is located.