Ethics in Managerial Accounting

Ethics in Managerial Accounting
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Ethics in Managerial Accounting
Managerial accounting entails the process of identifying, analyzing, measuring, and interpreting financial data to help businesses make proper decisions and manage their daily operations efficiently and effectively. In that light, managerial accountants prepare financial data, evaluate financial risks, and forecast cash flows. They also maintain ethical standards by complying with regulations established by various governing agencies at the federal, local, and state levels to ensure the creation and maintenance of public and client trust. Managerial accountants engage in business planning to offer managers accurate information to facilitate the decision-making process. The paper identifies accounting governing bodies in Maryland and describes their roles as they apply to setting ethical behavior and fiduciary duties of the managerial accountant. Moreover, it focuses on a recent case where ethical accounting standards were compromised.
The accounting governing bodies in Maryland that will be discussed in this paper are the Maryland Board of Public Accountancy (MBPA) and the Maryland Association of Certified Public Accountants (MACPA). The MBPA plays crucial roles in setting ethical behaviors and fiduciary duties of managerial accountants in Maryland. Indeed, it emphasizes consumer protection through education, licensing, examination, enforcement, continuing education, and facilitating accounting standards (Maryland Department of Labor, 1). Businesses are required to adhere to all set regulations and provide consumers with high-quality services and products. In addition, the MBPA ensures that Maryland has an inclusive and predictable regulatory environment via responsive and efficient processes. When it comes to managerial accountants, they are offered the best educational programs so that they can acquire relevant knowledge and skills and be competitive in the workforce. As such, the MBPA fosters economic growth through comprehensive and collaborative job training and employment programs to ensure employers get highly skilled managerial accountants to enhance business success in the future.
The MACPA emphasizes ethical standards in managerial accounting. In particular, it ensures that all managerial accountants in Maryland are qualified before they start working in different accounting fields. For instance, these accountants ought to pass an ethics exam and attain a specific pass mark. They are expected to comply with a strict professional ethical code and adhere to all the requirements set by the State Board of Public Accountancy (Maryland Association of CPAs, 2). For managerial accountants to get their first license, they have to obtain about 2,000 hours of practical work experience. The MACPA ensures that the fiduciary duties of managerial accountants are well understood by accounting professionals. For example, when undertaking their tasks, managerial accountants are expected to be friendly, timely, courteous, consistent, responsive, accurate, convenient, transparent, accessible, and truthful. As a result, MACPA plays a significant role in setting ethical behaviors and the fiduciary...