Competency. 1.2 You are a managerial accountant who has become privy to informat

Question

Competency. 1.2 You are a managerial accountant who has become privy to information about a takeover bid by your employing firm to acquire a rival company. A family friend is considering selling shares in this rival company and has asked you, an expert in the industry, for advice on this matter. You comply with your friend’s request. Which of the following is true?(1 point)
A.You are satisfying IMA Ethical Standards because you are “providing decision support information and recommendations that are accurate, clear, concise and timely.”
B.You are satisfying IMA Ethical Standards by “keeping information confidential except when disclosure is authorized or legally required.”
C.You are violating IMA Ethical Standards by not “mitigating actual conflicts of interest.”
D.You are violating IMA Ethical Standards by not “maintaining an appropriate level of professional expertise by continually developing knowledge and skills.”
E.None of the above are true statements

Explanation / Answer

You are a managerial accountant who has become privy to information about a takeover bid by your employing firm to acquire a rival company. A family friend is considering selling shares in this rival company and has asked you, an expert in the industry, for advice on this matter. You comply with your friend’s request.

The following statement is true :

" C.You are violating IMA Ethical Standards by not “mitigating actual conflicts of interest.”

=> This is because having become privy to information about a takeover bid by your employing firm to acquire a rival company, he should not advise his friend the the rival company's share trades.

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