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ACCA Applied Knowledge · Business and Technology · Fundamental principles of ethical behaviour

A junior accountant knows that a colleague's expense claim contains inflated mileage but says nothing because the colleague is a close friend. Which fundamental principle is most directly breached by this decision?

Objectivity is most directly breached. The accountant allowed a personal friendship to override professional judgement and failed to act on known inflated claims. Objectivity requires that bias, conflicts of interest or undue influence do not affect professional decisions, whereas confidentiality concerns disclosure, not silence.

  1. AObjectivity, because personal relationships have overridden professional judgementCorrect
  2. BConfidentiality, because information was withheld from management
  3. CProfessional competence and due care, because mileage was not recalculated
  4. DProfessional behaviour, because the accountant worked outside normal hours

Explanation

Objectivity requires that bias, conflict of interest or the influence of others does not override professional judgement. Here friendship, a familiarity influence, led to silence about a known problem. Confidentiality is about not disclosing information, so it is not breached by withholding it.

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