ACCA Applied Knowledge · Business and Technology · Fundamental principles of ethical behaviour
An accountant reviewing a supplier's invoice notices that the quantities charged are much higher than the goods received records show. The accountant decides not to accept the invoice at face value and asks for further evidence. Which attitude is the accountant demonstrating?
The accountant is showing professional scepticism, which is a questioning mind that critically assesses evidence and stays alert to possible misstatement. Rather than accepting the invoice as presented, the accountant seeks corroboration because the quantities conflict with the goods received records.
- AProfessional scepticismCorrect
- BProfessional courtesy
- CConfidentiality
- DSelf-interest
Explanation
Professional scepticism means having a questioning mind, being alert to conditions that may indicate misstatement, and critically assessing evidence. Here the accountant challenges the information rather than accepting it. Courtesy and confidentiality do not describe questioning evidence.
Did you get it right without looking?
One question tells you little. A timed set on Fundamental principles of ethical behaviour shows your real accuracy, how long you take and where you lose marks.
More Fundamental principles of ethical behaviour questions
- Bright Ltd's accountant prepared the company's year-end accounting entries. Later, the same accountant is asked to review the accuracy of th…
- Which of the following correctly lists the five fundamental principles in the ACCA Code of Ethics and Conduct?
- A senior accountant at a firm is offered an expensive holiday by a long-standing audit client's finance director shortly before the audit be…
- Priya, an ACCA member, prepares a tax computation for a client. She is asked to deal with a complex overseas tax matter that she has never s…
- Priya, a professional accountant in business, is asked by her finance director to alter a provision so that the company meets a bank covenan…
- During a review of expense claims, a trainee accountant notices that a senior manager's claims are consistently round numbers with no receip…