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

An accountant is reviewing a client's year-end inventory records. The finance director says the figures are correct and the accountant should not waste time checking them. The accountant nonetheless asks to see supporting count sheets. Which attitude is the accountant mainly demonstrating?

The accountant is showing professional scepticism. This is a questioning mind and critical assessment of evidence, rather than accepting management's statement at face value. Requesting supporting count sheets is a typical way of applying it, and it does not relate to confidentiality or fee-driven self-interest.

  1. AProfessional scepticism, being alert to conditions that may indicate misstatement and questioning evidence criticallyCorrect
  2. BConfidentiality, by limiting the information disclosed to third parties
  3. CSelf-interest, by trying to increase the work performed and fees charged
  4. DProfessional behaviour, by avoiding any action that discredits the profession

Explanation

Professional scepticism means having a questioning mind and critically assessing evidence rather than accepting management's assertions. Asking for count sheets is a direct example. Confidentiality concerns disclosure of information, and nothing here suggests fee motivation, so self-interest is unsupported.

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