ACCA Applied Knowledge · Business and Technology · Fundamental principles of ethical behaviour
An accountant is asked by a client to sign off a report that she knows contains a misleading statement about the client's cash position. Which fundamental principle is most directly breached if she signs?
Integrity is most directly breached. It requires accountants to be straightforward and honest and not to be associated with information they know to be false or misleading. Signing the report would link her to a misleading statement, regardless of her technical skill or any confidentiality duty.
- AIntegrityCorrect
- BConfidentiality
- CProfessional competence and due care
Explanation
Integrity means being straightforward and honest and not being associated with information that is false or misleading. Signing a report she knows is misleading breaches this. Confidentiality concerns disclosure of information, which is not the issue here.
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