ACCA Applied Knowledge · Business and Technology · Fundamental principles of ethical behaviour
An ACCA member, Lena, is the financial controller of a listed company. The CEO, who controls her bonus, pressures her to present a profit forecast in a way she believes is misleading to lenders. She is considering complying to protect her bonus. Which pairing of principles is most directly threatened?
Integrity and objectivity are most directly threatened. Knowingly presenting a misleading forecast breaches the duty to be straightforward and honest, while letting the CEO's pressure and her own bonus sway her judgement compromises objectivity through undue influence and self-interest threats.
- AConfidentiality and professional competence
- BProfessional competence and professional behaviour only
- CIntegrity and objectivityCorrect
- DConfidentiality and professional behaviour
Explanation
Presenting information she believes to be misleading would breach integrity, which requires being straightforward and honest. Allowing the CEO's pressure and her own bonus to override her judgement threatens objectivity through undue influence and self-interest. Confidentiality is not at issue because no disclosure of private information is described, and competence is not questioned.
Did you get it right without looking?
One question tells you little. A timed set on Fundamental principles of ethical behaviour shows your real accuracy, how long you take and where you lose marks.
More Fundamental principles of ethical behaviour questions
- A professional accountant is asked by an employer to describe in glowing terms a product's features to investors, going beyond what is suppo…
- Which of the following is a typical early step in a framework for resolving an ethical conflict?
- Which of the following is an example of a threat to objectivity, rather than to any other fundamental principle?
- An accountant is asked by her employer to prepare a tax computation in an area where she has no training. She agrees, believing that she can…
- A professional accountant working in a company's finance team is asked to present the company's case to a bank in a way that promotes its po…
- A finance director threatens to dismiss an accountant unless he agrees to a revenue recognition treatment the accountant believes breaches I…