ACCA Applied Knowledge · Business and Technology · Ethical conflicts and dilemmas

A finance manager is asked by the managing director to delay recording a large expense until after the year end so that a bonus target is met. In applying a decision-making framework, the manager identifies the fundamental principles under threat. Which pairing of principle and reason is most accurate?

Integrity and objectivity are under threat. Deferring an expense to hit a bonus target would produce misleading information, breaching honesty, and the managing director's pressure is undue influence that compromises the accountant's unbiased professional judgement.

1. AIntegrity and objectivity, because the request would involve misleading reporting and undue influenceCorrect
2. BConfidentiality, because the manager would be disclosing information to the directors
3. CProfessional behaviour only, because the request relates solely to company policy
4. DProfessional competence only, because the manager lacks technical knowledge