Another Resource for Ethics Programs

BY ROLAND L. MADISON

As a 29-year member of the AICPA, I applaud the article, “ Ensuring Ethical Effectiveness ” ( JofA , Feb.03, page 28). The article provided valuable information about the requirements in the Sarbanes-Oxley Act for publicly traded companies to disclose whether they have adopted a code of ethics for their senior financial officers, and if not, why.

It also mentioned a New York Stock Exchange proposal that would require all companies traded on that exchange to adopt corporate guidelines and a code of business conduct and ethics for all employees. If the SEC approves this proposal, it will mean that many publicly traded companies will be searching for guidance in developing codes of ethical conduct for their employees.

CPAs may provide assistance to their corporate clients in the development of codes of conduct for employees involved in financial management. While the article identified several organizations that can help accountants charged with developing, implementing or monitoring a corporation’s code of ethics, it did not discuss the Institute of Management Accountants. The IMA has offered the opportunity for any financial professional to contact its ethics hot line toll-free at 800-638-4427, extension 1662, or to send inquiries via e-mail to its professional ethics counseling service at ethics@imanet.org . In addition, the IMA permits corporations to use its standards of ethical conduct for compliance with section 404 of Sarbanes-Oxley.

Speaking as a longtime professor of management accounting who has integrated ethics education into the classroom, I can wholeheartedly endorse the IMA’s 20-year-old code of ethics. The one-page code is simple and yet provides ample guidance at no charge for proper ethical conduct for persons engaged in management accounting and financial management. It is the IMA’s desire to provide a service to the betterment of the financial community, as the AICPA and the Financial Executives International organizations do.

Roland L. Madison, CPA
Professor of Accountancy
John Carroll University
Cleveland

SPONSORED REPORT

Cybersecurity threats proliferating for midsize and smaller businesses

This report details how SMBs can properly protect private information from breaches, design and implement a cybersecurity policy, and create safeguards for training and education.

CHECKLIST

Being responsive to clients

CPAs and their firms have daily pressures and hectic schedules, but being responsive is crucial to client satisfaction. Leaders in the profession offer advice for CPA firms that want to be responsive to clients.

QUIZ

Test yourself on these often confused words

The spelling checker on your word processing program can do only so much to flag problems. Your best insurance is to learn the troublesome words that trip up writers and use them correctly by the standards of formal, written English.