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ACCA Applied Knowledge · Business and Technology · The role of regulatory and professional bodies in promoting ethical and professional standards in the accountancy profession

A professional body finds that a member, acting as an auditor, failed to comply with its code of ethics. The body wants to maintain public trust in the profession. Which course of action is MOST consistent with effective regulation?

The body should run a formal disciplinary process, impose proportionate sanctions and publish the outcome where appropriate. Transparency and consistent enforcement deter other members and show the public that the profession holds itself accountable, whereas quiet resignations or private handling would undermine trust.

  1. AInvestigate through a formal disciplinary process, apply proportionate sanctions and publish the outcome where appropriateCorrect
  2. BQuietly advise the member to resign and take no further action
  3. CLeave the matter to the member's employer to resolve privately

Explanation

Effective regulation needs a fair, transparent process with proportionate sanctions, such as reprimand, fine or exclusion, and publication to deter others and show accountability. Quiet resignation or private resolution hides the breach and damages public confidence.

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