This module introduces the ethical framework governing management accountants, focusing on the IMA’s Statement of Ethical Professional Practice. Learners explore core ethical principles such as honesty, fairness, objectivity, and responsibility, along with the four professional standards: competence, confidentiality, integrity, and credibility. The module builds a strong conceptual foundation in ethical decision-making, professional conduct, and accountability required for CMA Part 2 and real-world financial leadership roles.

This module examines how ethical conduct is reinforced through organizational governance structures and regulatory laws. Learners study ethical conflict resolution procedures, the Foreign Corrupt Practices Act (FCPA) of 1977, and the Sarbanes-Oxley Act (SOX) of 2002. The module also explores corporate responsibility, tone at the top, whistleblower mechanisms, and the role of leadership in fostering an ethical organizational culture aligned with compliance and internal control systems.

This module focuses on the practical implementation of ethics through fraud prevention, fraud risk assessment, and internal control mechanisms. Learners explore the fraud risk model (opportunity, rationalization, and pressure), red flags of fraudulent financial reporting and asset misappropriation, and types of internal controls including preventive, detective, corrective, directive, compensatory, and safeguarding controls. The module emphasizes how ethical culture and strong internal controls work together to reduce fraud risk in organizations.