Adrian Coleman, Itzel Kotch, Gian Guerrero, Reynaldo Burgos, Sonali Sharma

Line and staff relationship

Organizations distinguish between line management and staff management.
Line management
 Are directly responsible for attaining the goals of the organization.
 Can also be an employee who directly manages other employees and operations.
 An example would be an audit manager who is overlooking an audit and makes the
decisions on how to best carry out the testing and approving the selections made by the
AIC and support staff.
Staff Management
 They are responsible to help assist or support line management.
 Is a process that is used to effectively manage employees.
 An example would be if a laptop given to the teachers stops working, the teacher can take
it to the IT department and have a tech fix it for them.
Chief financial officer-is also called the finance director. They are responsible for overseeing
the financials.
Controllership—includes providing financial information for reports to managers and
shareholders, and overseeing the overall operations in accounting.
Treasury—includes banking and short- and long-term financing, investments, and cash
management.
Risk management—includes the financial risk of interest-rate and exchange-rate changes and
derivatives management.
Taxation—includes income taxes, sales taxes, and international tax planning.
Investor relations—based on communicating, responding, and interacting with shareholders
Internal audit—reviews and analyzes financial and other records to prove the integrity of the
organization’s financial reports and to adherence to its policies and procedures.
The controller (also called the chief accounting officer) is the financial executive primarily
responsible for management accounting and financial accounting. Controllers will only show
authority over their own departments. By reporting and interpreting relevant data, the controller
influences the behaviour of all employees and exerts a force that impels line managers toward
making better-informed decisions as they implement their strategies.
Professional Ethics
Professional ethics are principles that govern the behaviour of a person or grouping a business
environment
Some concepts in professional ethics are:
 Working in cross functional teams and a s a business partner of managers- employees
should not only be competent in their area of study and should be able to network with
other teams and departments within the organizations, since it is their responsibility to be
knowledgeable in all aspects of the company.
 Promoting fact base analysis and making tough minded critical judgements without being
adversarial- management accountants should always advise managers to help improve
their decision and plans.
 Leading and motivating people to change and be innovative – individuals should
contribute to implementing new and innovative ideas and managers should provide
incentives in order to meet the organization goals.
 Communicating- communication is a key function to make an organization successful.
 Having a hard sense of integrity- management accountants must never succumb to
pressure from authority and always provide information in full disclosure, in order to
protect the company’s reputation.

Institute of Management Accountants

As accountants, we have a duty to have and follow high ethical standards. The Institute of
Management Accountants formulated these standards of ethical professional practices in order
for us to achieve the Objectives of Management Accounting.
PRINCIPLES
IMA’s overarching ethical principles include: Honesty, Fairness, Objectivity, and Responsibility.
STANDARDS
there will be disciplinary actions for failure to comply with the standards.
COMPETENCE
1. They must continuously develop their knowledge and skills to maintain an appropriate
level of professional expertise.
2. Perform professional duties in accordance with relevant laws, regulations, and technical
standards.
3. Provide decision support information and recommendations that are accurate, clear,
concise, and timely.
4. Recognize and communicate limitations or constraints that may modify judgment or
successful performance of an activity.
CONFIDENTIALITY
1. Keep information confidential except when disclosure is authorized or legally required.
 2. Inform all relevant parties regarding appropriate use of confidential information. Monitor
subordinates use of the information as well.
3. Refrain from using confidential information for unethical or illegal advantage.
INTEGRITY
1. Lessen the conflict of interests, regularly communicate with business associates to avoid
any conflict of interest and advise all parties of any potential conflicts.
2. Refrain from engaging in any conduct that would hinder carrying out duties ethically.
3. Abstain from engaging in or supporting any activity that might discredit your profession.
CREDIBILITY
1. Communicate information fairly and objectively.
2. Disclose all relevant information that could reasonably be expected to influence an
intended user’s understanding of the reports, analyses, or recommendations.
3. Disclose delays or deficiencies in information, timeliness, processing, or internal controls
in conformance with organization policy and/or applicable law.