Eight. The Ethics of Managerial Accounting

  1. Ronald Duska1,
  2. Brenda Shay Duska2 and
  3. Julie Ragatz1

Published Online: 20 APR 2011

DOI: 10.1002/9781444395907.ch8

Accounting Ethics, Second Edition

Accounting Ethics, Second Edition

How to Cite

Duska, R., Duska, B. S. and Ragatz, J. (2011) The Ethics of Managerial Accounting, in Accounting Ethics, Second Edition, Wiley-Blackwell, Oxford, UK. doi: 10.1002/9781444395907.ch8

Author Information

  1. 1

    The Center for Ethics in Financial Services, The American College, USA

  2. 2

    Del Pizzo & Associates, USA

Publication History

  1. Published Online: 20 APR 2011
  2. Published Print: 11 MAR 2011

Book Series:

  1. Foundations of Business Ethics

Book Series Editors:

  1. W. Michael Hoffman and
  2. Robert E. Frederick

ISBN Information

Print ISBN: 9781405196130

Online ISBN: 9781444395907



  • ethics of managerial accounting;
  • Fannie Mae case - typical of the worst scandals in accounting history;
  • Independence Standards Board (ISB) - delineating responsibilities of internal management, including internal management accountants;
  • Black's Law Dictionary, defining “fair” - as having the qualities of impartiality and honesty, free from prejudice, favoritism and self interest;
  • health of a business enterprise - depending on the truth, if the business is naked, it is best to know;
  • first reason (rationalization?) given for unethical behavior - a belief that the activity is within reasonable ethical and legal limits;
  • management accountant's responsibilities - to do his or her job, that is, to execute whatever accounting function he or she was hired to perform;
  • accountants, a fiduciary responsibility - ethical obligation, reporting illegal or potentially harmful activities;
  • whistle-blowing, chances of success - ethical obligation to blow the whistle to prevent harm to the firm


This chapter contains sections titled:

  • Reasons Used to Justify Unethical Behaviors

  • Blowing the Whistle