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

An accountant has followed all internal procedures to resolve an ethical conflict, but senior management still insists on a course of action that breaches the fundamental principles. Which of the following is the MOST appropriate next step?

After exhausting internal procedures, the accountant should document the matter, take advice and consider withdrawing from the engagement or resigning. Accepting management's decision would breach the fundamental principles, and press disclosure would breach confidentiality unless a legal or professional right or duty to disclose exists.

  1. ADocument the issues and consider withdrawing from the engagement or resigning, after taking appropriate adviceCorrect
  2. BAccept management's decision because the internal procedures have been exhausted
  3. CDisclose all details to the press to protect the public
  4. DContinue working but reduce the scope of her own tasks without telling anyone

Explanation

If the conflict remains unresolved, the accountant should consider withdrawing from the engagement team or resigning, keeping a record of the issue and the discussions, and taking advice. Accepting a breach violates integrity. Press disclosure would breach confidentiality unless a legal or professional duty or right permits it. Quietly narrowing duties does not resolve the matter.

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