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

An accountant is asked by her employer to prepare a tax computation in an area where she has no training. She agrees, believing that she can work it out, and does not tell the employer of her limits. Which statement is most accurate?

She risks breaching professional competence and due care. Accountants should only undertake work they are competent to perform, or else obtain training or assistance and be open about their limits. The breach risk arises on accepting the work, not merely if an error later appears, and employer instructions do not override it.

  1. AShe risks breaching professional competence and due care, because she should only undertake work she has the knowledge and skill to perform or obtain suitable help or trainingCorrect
  2. BShe has breached confidentiality because she used unfamiliar sources of information
  3. CShe is acting correctly because employees must always follow employer instructions
  4. DShe has breached integrity only if the computation is later found to contain an error

Explanation

Professional competence and due care requires maintaining knowledge and skill and not undertaking work beyond one's competence without help or training. The risk exists when the work is accepted, not only if an error later emerges, so the integrity option is wrong. Following instructions does not override the principles.

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