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

An accountant in business is under pressure from her finance director to approve a misleading expense claim. According to the ACCA/IESBA approach to ethical conflicts, what should she do first?

She should first consider the employer's internal policies and the fundamental principles that are at stake. Ethical conflict resolution starts with establishing facts and using internal procedures. Resignation or external disclosure come later, and simply obeying a senior breaches integrity.

  1. AFollow the finance director's instruction because of his seniority
  2. BResign immediately and tell no one
  3. CRefer to the employer's internal policies and consider the relevant fundamental principlesCorrect
  4. DReport the matter to the press

Explanation

The first step in resolving an ethical conflict is to gather the facts and consider the relevant fundamental principles and the employer's internal procedures. Resigning or going public are last-resort steps. Obeying a senior colleague would breach integrity.

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