ACCA Strategic Professional · Advanced Audit and Assurance (International) · Advertising, tendering, and obtaining professional work and fees
Brandt Audit plans to say in brochures: 'Our audit partners hold the ACCA qualification and our firm has audited over 40 listed companies.' In fact only 31 listed companies have been audited, the other nine being unlisted subsidiaries of listed groups. The marketing director says the figure is 'broadly right'. Which response best reflects the Code?
The firm should correct the claim to what it can substantiate. Claiming over 40 listed audits when only 31 exist is misleading, breaching integrity and professional behaviour. Qualifiers like 'approximately' do not cure it, while the true qualification statement may stay.
- AAccept, since the figure is only slightly overstated and the qualification claim is true
- BCorrect the claim to what can be substantiated, because the statement is misleading and breaches the principles of integrity and professional behaviourCorrect
- CAccept if the brochure adds the word 'approximately'
- DRemove only the qualification claim, as it cannot be verified by clients
Explanation
Marketing must not contain false or misleading statements or exaggerated claims. The figure of 40 listed audits is unsupported (31 actual), so it must be corrected. Adding 'approximately' does not make a materially overstated claim honest. The qualification claim is true and acceptable.
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