It is difficult to imagine such a conventional and subdued profession as accounting being embroiled in scandal and intrigue worthy of a spy thriller. Not long ago, however, the word Enron was splashed across newspaper headlines, and instantly the word’s connotation transformed from a solid company name to a synonym for deceit. Enron was but the most publicized among a slew of several other cases – there were Tyco International, HealthSouth, Adelphia Communications, WorldCom, Global Crossing, Arthur Andersen and Rite Aid (Garrison, Noreen and Brewer, 2006, p. 20), which merited either monstrous fines or even imprisonment for the managers who were held responsible. The unethical accounting practices that fueled these scandals brought stark reality into focus, that naïve common trust was misplaced in the business world, and the supposedly iron-clad regulations by the Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission (SEC) are but an illusion. Overnight, the image of the insufferably straight-laced, soft-spoken, bespectacled accountant was forever shattered, supplanted by the notorious persona of the quintessential white-collar criminal.These series of scandals became the eye-opener to the need for a more vigilant approach to the proper practice of accounting. Managerial accounting, in particular, being the vehicle by which managers make decisions, plays a pivotal role in ensuring that the requisite ethical standard is observed. The quality of management accounting reports will directly determine the quality of managerial decisions. It thus helps to understand management accounting.Management accounting is defined as the process of identifying, measuring, accumulating, analyzing, preparing, interpreting, and communicating information that helps managers fulfill organizational objectives.