ACCA Applied Knowledge · Business and Technology · Ethical conflicts and dilemmas
An accountant in business is told by the finance director that her annual bonus and continued employment depend on adjusting the forecasts so a loan covenant is met. Which threats are most directly created?
Self-interest and intimidation. The bonus and job security give her a personal financial stake, while the director's pressure to alter the forecasts deters her from acting objectively and with integrity.
- AFamiliarity and advocacy
- BSelf-review and familiarity
- CSelf-interest and intimidationCorrect
- DAdvocacy and self-review
Explanation
The bonus and job security create a self-interest threat because of her financial stake. The implied pressure from the director to comply creates an intimidation threat. Familiarity and self-review are not described, so the other pairings are wrong.
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