ACCA Applied Knowledge · Business and Technology · Ethical conflicts and dilemmas
An accountant has raised an ethical concern through every level of internal management and the board, but the unethical practice continues and no satisfactory resolution has been reached. Which course of action is MOST appropriate?
The accountant should consider further steps such as taking legal advice, making disclosure where legally permitted or required, and if necessary resigning. Doing nothing leaves them associated with wrongdoing, and going to the media would breach confidentiality without being an appropriate channel.
- ATake no further action, as internal escalation has discharged the duty
- BConsider whether further action is needed, such as obtaining legal advice, disclosing where legally permitted or required, and ultimately withdrawing from the engagement or resigningCorrect
- CLeak the information to the media to put pressure on the organisation
Explanation
If internal resolution fails, the accountant should consider further steps: legal advice, disclosure to an appropriate authority where law permits or requires it, and possibly resigning. Doing nothing leaves them associated with the misconduct, while media disclosure breaches confidentiality and is not a proper route.
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