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

An accountant is preparing a report for her employer. A close friend who owns a supplier company asks her to give his firm favourable treatment in the report. She refuses because she does not want her judgement to be swayed by personal relationships. Which fundamental principle is she mainly applying?

She is applying objectivity. This principle requires professionals not to let bias, conflicts of interest or undue influence from others, such as a friend, override their professional judgement. Confidentiality concerns protecting information, which is not what her refusal to favour the supplier is about.

  1. AConfidentiality
  2. BObjectivityCorrect
  3. CProfessional behaviour
  4. DProfessional competence and due care

Explanation

Objectivity requires that bias, conflict of interest or undue influence of others does not override professional or business judgements. Her refusal to let a friendship affect her report is a direct application. Confidentiality concerns protecting information, which is not the issue here.

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