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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Code of Ethics for Professional Accountants

A professional accountant in business is pressured by the chief executive to approve an expense claim that she believes to be inflated, with a hint that her promotion depends on cooperation. Which threat does this represent, and which response is most appropriate?

This is an intimidation threat, because the CEO's pressure and the hint about promotion could deter her from acting with integrity. She should not approve the claim and should use internal escalation or whistleblowing procedures and seek advice.

  1. AIntimidation threat; consider the organisation's escalation or whistleblowing procedures and seek advice rather than yieldCorrect
  2. BFamiliarity threat; accept the claim since the CEO is trusted
  3. CSelf-review threat; ask the CEO to re-prepare the claim
  4. DAdvocacy threat; promote the claim to the board

Explanation

Pressure that could deter the accountant from acting objectively, linked to career consequences, is an intimidation threat. She should not yield. Appropriate responses include using internal escalation or whistleblowing procedures and seeking advice. No close relationship, review of her own work or promotion of a position is described, so the other threats do not apply.

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