Business and Technology · Fundamental principles of ethical behaviour

Fundamental Principles of the ACCA Code of Ethics Explained

Updated 11 October 2026 · Fact-checked

The ACCA Code of Ethics sets five fundamental principles for every accountant: integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour. To answer an exam question, identify the facts, match them to the principle that is breached, and say why. Name the principle, then justify it from the scenario.

Understand Fundamental Principles of ACCA Code of Ethics

The fundamental principles are the core ethical rules every ACCA member and student must follow. They apply whether you work in practice, in a company, in the public sector or in education. They exist because users trust accountants to be honest, fair and skilled. If that trust fails, financial information loses its value.

There are five principles. Integrity means being straightforward and honest in all professional and business dealings. You do not knowingly give false or misleading information, and you do not leave out information when doing so would mislead. Objectivity means not letting bias, conflict of interest or the influence of others override your professional judgement.

Professional competence and due care has two parts. You must keep your knowledge and skills at the level needed to give a competent service. You must also act diligently and in line with technical and professional standards. Taking on work you cannot do properly breaches this principle.

Confidentiality means you do not disclose information gained through professional work unless you have proper authority or a legal or professional right or duty to disclose. You also must not use that information for personal advantage or for a third party. Professional behaviour means complying with relevant laws and regulations and avoiding conduct that you know, or should know, might discredit the profession.

A simple way to separate integrity and objectivity: integrity is about your own honesty, while objectivity is about the independence of your judgement. A person can be honest yet still biased by a close relationship or a financial interest. In BT, the exam gives a short scenario and asks which principle is at risk.

Key formulas to remember

Integrity: Integrity = straightforward + honest; Not being party to false or misleading information. Think honesty and fair dealing.
Objectivity: Objectivity = no bias, no conflict of interest, no undue influence; Judgement must not be overridden by outside pressure or personal interest.
Professional competence and due care: Competence = knowledge and skill kept up to date; due care = diligent work to standards; Covers both ability and effort. Also covers CPD and acting within your competence.
Confidentiality: Do not disclose or use information without authority, unless there is a legal or professional right or duty; The duty continues after the relationship ends. Disclosure can be required, for example by law.
Professional behaviour: Comply with laws and regulations + avoid conduct that discredits the profession; Includes not exaggerating your services or qualifications and not disparaging others unfairly.
Memory aid: I O C C P; Integrity, Objectivity, Competence (and due care), Confidentiality, Professional behaviour.

How to solve Fundamental Principles of ACCA Code of Ethics questions

Use this method for any scenario question asking which principle applies or is breached.

1Read the last line first so you know whether you must pick one principle, several, or a reason.
2Read the scenario and underline the key action: what did the accountant do or fail to do?
3Ask what the action involves: dishonesty, bias, lack of skill or effort, sharing information, or conduct that harms the profession's reputation.
4Match that to one principle using the definitions: honest = integrity; independent = objectivity; skill and effort = competence and due care; secrets = confidentiality; laws and reputation = professional behaviour.
5Check the other options. If two seem possible, choose the one that fits the main fact, not a side detail.
6For multiple response, select exactly the stated number and make sure each choice is supported by the facts.
7Answer, and if the question asks why, link the principle to the specific fact.

Quickest way: Keyword matching

When to use it: Use it for one- and two-mark objective test questions where time is short.

Spot the trigger word: false or misleading = integrity.
Bias, friend, family, gift, pressure, own interest = objectivity.
Lacks skill, out of date, rushed, careless = competence and due care.
Passing on client or employer information = confidentiality.
Breaking law or damaging the profession's image = professional behaviour.
If two fit, ask which principle is the main one the scenario is built around.

Common mistakes in Fundamental Principles of ACCA Code of Ethics

Confusing integrity with objectivity.
Both sound like being fair and honest.
Fix: Integrity is about your own honesty. Objectivity is about independence from bias and influence. Ask: is the problem lying, or is it pressure and conflict?
Saying confidentiality means information can never be disclosed.
Students remember the word 'confidential' and overlook the exceptions.
Fix: Disclosure is allowed with proper authority, or when there is a legal or professional right or duty to disclose. Using information for personal gain is never acceptable.
Treating competence as only holding a qualification.
The principle name sounds like skills only.
Fix: Remember both parts: maintain knowledge and skill, and act diligently to standards. Rushing or missing deadlines can breach due care.
Choosing professional behaviour for everything.
It seems like a catch-all for any bad conduct.
Fix: Use it only when the main issue is breaking law or regulation or discrediting the profession. Pick a more specific principle when one fits.
Listing all five principles when asked to identify one.
Students try to be safe by covering everything.
Fix: Answer exactly what is asked. In objective tests, select only the number of options required.
Mixing up the principles with threats and safeguards.
They are taught together in the same chapter.
Fix: The principles are the rules. Threats such as self-interest or intimidation are what endanger them. Safeguards reduce threats.

Worked examples

Example 1

An accountant in a company is asked by the finance director to omit a large liability from a report to the bank so that a loan is approved. The accountant agrees. Which fundamental principle is most clearly breached? Options: A Integrity; B Confidentiality; C Professional competence and due care; D Objectivity.

Show the solution

The key action is leaving out a liability to mislead the bank.
This is dishonesty: providing information that is misleading by omission.
Misleading information points to integrity.
Objectivity could be argued because of pressure from the director, but the main fact is the false report, so integrity is the best fit.
No client information is being shared, so not confidentiality. No lack of skill is described, so not competence.

Answer: A Integrity

Example 2

An ACCA member is auditing a client. Her brother owns a large share of the client and she does not tell her firm, then signs off the audit without challenging the figures. Explain which principle is mainly at risk and why.

Show the solution

Identify the facts: a close family member has a financial interest in the client.
This creates a conflict of interest and a risk of bias in her judgement.
Independence of judgement is the heart of objectivity, so objectivity is the principle mainly at risk.
Not telling her firm also raises a possible integrity issue because she has not been straightforward.
State the main principle first and mention the secondary one briefly.

Answer: Objectivity is mainly at risk because her family interest could bias her judgement. Failure to disclose it also raises an integrity concern.

Exam tips

Learn the five principles in order and match each to one keyword before the exam.
In multiple response questions, select exactly the number stated and check each choice against the facts.
When two principles fit, choose the one the scenario is mainly built around.
Remember that confidentiality has exceptions for authority and legal or professional duty.
Do not mix up principles with threats; the principles are the rules you must follow.

Practice questions from Fundamental principles of ethical behaviour

Fundamental Principles of ACCA Code of Ethics in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Fundamental Principles of ACCA Code of Ethics: frequently asked questions

What are the five fundamental principles in the ACCA Code of Ethics?

They are integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour. They apply to all ACCA members and students in every role.

What is the difference between integrity and objectivity?

Integrity is about being honest and straightforward. Objectivity is about keeping your judgement free from bias, conflicts of interest and undue influence. You can be honest and still lack objectivity.

Can an accountant ever disclose confidential information?

Yes, in certain cases. Disclosure is allowed with proper authority or when there is a legal or professional right or duty to disclose. Information must never be used for personal advantage.

How are these principles tested in BT?

They appear mostly in objective test questions and in short scenarios. You are usually asked to identify which principle applies or is breached based on the facts given.