ACCA Strategic Professional · Strategic Business Leader · Professionalism, ethical codes and the public interest
Amara, a professional accountant, is finance director of Zephyr Logistics. The chief executive instructs her to delay recognising a major contract loss until after a share-price-sensitive refinancing. She refuses, citing her duty, and the CEO warns she will be dismissed. Which analysis best reflects the ethical position under a professional accountant's code and the public interest?
Amara faces an intimidation threat from the CEO's dismissal warning. She must not compromise integrity, so she should escalate to the audit committee or board, take legal advice and document everything, and consider resigning if it stays unresolved. Seniority or legal authority does not justify misleading investors.
- AIntimidation threat exists; Amara must not compromise integrity, should escalate internally, take legal advice and document, and consider resigning if unresolvedCorrect
- BSelf-review threat exists; Amara should reverse her own earlier entries and then comply with the instruction
- CFamiliarity threat exists; Amara should accept the CEO's judgement given their long working relationship
- DNo threat exists because the CEO has legal authority over reporting decisions
Explanation
The dismissal warning is a pressure to act improperly, so it is an intimidation threat. Fundamental principles, especially integrity and professional behaviour, cannot be waived because of the CEO's authority. She should escalate to the board or audit committee, seek legal advice, keep records, and consider resigning if the matter remains unresolved. Deferring to seniority would breach the public interest duty to investors.
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