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

A junior accountant is offered an expensive holiday by a supplier shortly before a contract renewal that she influences. Which safeguard is MOST likely to reduce the threat to objectivity?

She should decline the holiday and report the offer to a senior person under company policy. This removes the self-interest threat to objectivity and provides transparency, whereas accepting the gift fully, partly or with a delayed decision still leaves the threat in place.

  1. AAccepting the gift but telling no one
  2. BDeclining the gift and reporting the offer to a senior person in line with the company policyCorrect
  3. CAccepting the gift and delaying the renewal decision for a month
  4. DAccepting only half of the holiday

Explanation

Declining the gift and reporting it under company policy removes the self-interest threat and creates transparency. Accepting any part, even with a delay, leaves the threat to objectivity and the appearance of influence in place.

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