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

A finance manager is pressured by the chief executive to alter a forecast so that a bonus target is met. The manager refuses, fearing dismissal. Which of the following statements about the manager's position is most accurate?

The manager faces an intimidation threat and should document the matter and escalate it internally. Being instructed by a superior does not remove personal ethical responsibility, and complying while merely noting disagreement would still mean producing a misleading forecast in breach of integrity.

  1. AThe manager faces an intimidation threat and should document the matter and escalate it internally, as safeguards can reduce the threatCorrect
  2. BThe manager faces only a familiarity threat because the two work closely
  3. CThe pressure removes the manager's ethical responsibility because the instruction came from a superior
  4. DThe manager should comply but record a disagreement in writing, as that fully discharges the duty

Explanation

Pressure linked to fear of dismissal is an intimidation threat, and a sensible response is to document the matter and escalate internally. Following an instruction from a superior does not remove personal responsibility, and recording disagreement while still altering the forecast would breach integrity.

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