Strategic Business Leader · Professionalism, ethical codes and the public interest

Fundamental Principles of the ACCA Code of Ethics for SBL

Updated 11 October 2026 · Fact-checked

The ACCA Code of Ethics and Conduct sets five fundamental principles: integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour. In SBL, you spot which principle is under pressure in the scenario, name the threat, explain why it matters, and recommend safeguards.

Understand Fundamental Principles of the ACCA Code of Ethics

The ACCA Code of Ethics and Conduct tells professional accountants how to behave. It is built on five fundamental principles. Every ethical issue in an exam scenario links back to at least one of them.

Integrity means being straightforward and honest in all professional and business dealings. You do not knowingly give false or misleading information, or leave out information that makes a statement misleading.

Objectivity means you do not let bias, conflict of interest or undue influence of others override your professional judgement. Professional competence and due care means you keep your knowledge and skills at the level needed to give a competent service, and you act diligently and in line with technical and professional standards. Confidentiality means you keep information gained through professional work private. You do not disclose it without proper authority, unless there is a legal or professional right or duty to disclose, and you do not use it for personal gain. Professional behaviour means you comply with relevant laws and regulations and avoid any conduct that you know, or should know, might discredit the profession.

The Code is a framework, not a list of fixed answers. You identify threats to compliance, assess how significant they are, and apply safeguards to remove or reduce them to an acceptable level. The Code groups threats as self-interest, self-review, advocacy, familiarity and intimidation. If no safeguard works, you may need to decline or withdraw from the work.

The public interest sits behind all of this. Accountants are trusted because they put the public interest ahead of the interests of one client, employer or themselves. In SBL, this is also where professional skills marks are earned: you show scepticism, you judge the situation, and you communicate a clear recommendation.

Key rules to remember

Integrity: Integrity = straightforward and honest dealings; Breached by false, misleading or incomplete information given knowingly.
Objectivity: Objectivity = judgement free from bias, conflict of interest and undue influence; Most scenario threats (fees, relationships, pressure from a boss) hit objectivity.
Professional competence and due care: Competence and due care = adequate knowledge and skill + diligent work to standards; Includes keeping knowledge up to date and not accepting work you cannot do properly.
Confidentiality: Confidentiality = no disclosure and no personal use, unless a legal or professional right or duty to disclose exists; Disclosure may be permitted or required, for example by law or to protect professional interests; take advice first.
Professional behaviour: Professional behaviour = comply with laws and regulations + avoid discrediting the profession; Covers conduct such as misleading marketing or ignoring legal duties.
Threat categories: Self-interest, self-review, advocacy, familiarity, intimidation; Name the category, then link it to the principle at risk.
Threats and safeguards approach: Identify threat → evaluate significance → apply safeguards → if not reduced to an acceptable level, decline or withdraw; Use this as the spine of every answer.

How to solve Fundamental Principles of the ACCA Code of Ethics questions

Use the same structure for any ethics requirement. It keeps your answer applied to the scenario and earns professional skills marks.

1Read the requirement. Note who you are advising and whether it asks to identify issues, discuss threats, or recommend action.
2Pick out the facts in the scenario that look wrong: pressure, money, relationships, secrecy, shortcuts.
3Match each fact to a fundamental principle. Name the principle and say how it is at risk.
4Name the threat type (self-interest, self-review, advocacy, familiarity, intimidation) and judge how significant it is.
5Propose safeguards that fit the facts, such as escalating to those charged with governance, getting a second review, seeking advice from ACCA or legal counsel, or documenting concerns.
6Say what you would do if safeguards fail: refuse the instruction, decline the work or resign, and consider your legal duties on disclosure.
7Close with a clear recommendation and link it to the public interest. Keep a professional, balanced tone.

Quickest way: Principle, threat, safeguard in three lines per issue

When to use it: Use it when time is short or the scenario has several ethical issues packed into a few lines.

Write the issue in one line: what happened and who is involved.
Write: Principle at risk, threat type.
Write: Safeguard and fallback action.
Repeat for each issue, then add one sentence on the public interest.

Common mistakes in Fundamental Principles of the ACCA Code of Ethics

Listing all five principles with textbook definitions and no link to the scenario.
Students recall definitions easily and feel safe writing them.
Fix: Mention only the principles the facts actually engage, and quote the scenario facts that show the breach.
Confusing integrity with objectivity.
Both sound like honesty and fairness.
Fix: Integrity is about truthfulness and honest dealing. Objectivity is about bias, conflicts and influence on judgement. Ask: is someone lying, or is judgement being compromised?
Saying confidentiality is absolute.
The word suggests nothing may ever be disclosed.
Fix: State that disclosure may be permitted or required by law or professional duty. Recommend taking legal or professional advice before disclosing.
Stopping at 'this is unethical' with no safeguards.
Students treat ethics as a judgement question rather than an action question.
Fix: Always give practical safeguards and a fallback, such as escalation, documentation or withdrawal.
Taking the easy side, such as simply following the boss or simply resigning.
Real pressure is under-weighted in an exam setting.
Fix: Show a staged response: raise concerns internally first, escalate if needed, then consider withdrawal. Explain your reasoning.
Ignoring professional skills marks in ethics answers.
Students focus on technical content only.
Fix: Show scepticism by questioning the facts, give a balanced view of options, and write a clear, well-structured recommendation.

Worked examples

Example 1

You are the finance manager at a listed company and a member of ACCA. The finance director asks you to delay recording a large supplier invoice until after the year end so profit meets the bank's covenant. Discuss the ethical issues and what you should do.

Show the solution

Issue: the instruction asks you to misstate the financial statements by leaving out a liability that belongs in this period.
Principle at risk: integrity, because you would knowingly provide misleading information. Professional behaviour is also at risk, because you would breach reporting standards and possibly laws.
Threat: intimidation, because the instruction comes from a senior person. There is also self-interest if your job or bonus depends on pleasing the director.
Safeguards: explain to the director that the invoice must be recorded in the correct period, citing the standards. Document the conversation. If the director insists, raise it with the audit committee, chair or other people charged with governance.
Fallback: refuse to process the entry. If the issue stays unresolved, consider seeking legal or ACCA advice and, as a last resort, resigning. Take advice on any duty to report.
Public interest: the bank, investors and others rely on accurate accounts, so the accounts must not be manipulated.

Answer: The instruction threatens integrity and professional behaviour through intimidation. You should refuse to misstate, document your concerns, escalate to those charged with governance, take advice, and resign if the matter cannot be resolved.

Example 2

An ACCA member works as a management accountant for Company A. At a dinner with a friend who works for a competitor, she is asked about Company A's unannounced new product costs. The friend says it would help him in a tender. Explain the principle at risk and how she should respond.

Show the solution

Principle at risk: confidentiality. Cost information gained through her employment is confidential and not hers to share.
Threat: familiarity, because friendship may make her feel she should help. There is also a possible self-interest threat if the friend offers a favour in return.
Disclosing would not be allowed unless there is proper authority or a legal or professional right or duty to disclose. A friend's tender is neither.
Response: decline politely and clearly, and do not discuss the cost information. Avoid similar situations, or limit work talk with the friend.
If she was already pressed or may have disclosed something, she should tell her manager and follow company policy.
Her professional behaviour is also engaged, as disclosure would discredit the profession.

Answer: She must not disclose the information because confidentiality applies. The familiarity threat is managed by declining, keeping work talk out of social contact, and reporting to her manager if the pressure continues.

Exam tips

Tie every principle to a specific fact in the scenario. Generic definitions earn very little.
Use the threat categories by name. It shows you know the Code's framework.
Always propose safeguards and a fallback. Examiners reward practical, staged action.
Show professional skills: question the facts, weigh options and write a clear recommendation in a suitable tone for the reader.
Mention the public interest in your conclusion, especially where third parties could be harmed.

Practice questions from Professionalism, ethical codes and the public interest

Fundamental Principles of the 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 the ACCA Code of Ethics: frequently asked questions

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

They are integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour. Every ethical issue in a scenario relates to one or more of them.

How do I answer ethics questions in the SBL exam?

Identify the facts that raise concern, name the principle at risk and the threat type, then propose safeguards and a fallback action. Finish with a clear recommendation and link to the public interest.

What are threats and safeguards in the ACCA Code?

Threats are circumstances that could stop you complying with the fundamental principles: self-interest, self-review, advocacy, familiarity and intimidation. Safeguards are actions that remove or reduce the threat to an acceptable level, such as escalation, review by another person or declining the work.

Can an accountant ever breach confidentiality?

Disclosure may be allowed or required where there is a legal or professional right or duty to disclose. You should take legal or professional advice before disclosing and should never use the information for personal gain.