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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Advertising, tendering, and obtaining professional work and fees

Brandt & Lowe, an audit firm, is preparing marketing materials. Which of the following proposed items would be the MOST likely to breach the IESBA Code, in the context of a firm that wishes to maintain its reputation and independence?

The social media post is most likely to breach the Code because it promises results, lower fees and no regulator queries, that the firm cannot guarantee. This is misleading, creates unrealistic expectations and may suggest improper influence over regulators. Factual descriptions of services, qualifications, registration and technical articles are acceptable.

  1. AA website page listing the firm's services, partner qualifications and office locations
  2. BA newsletter article explaining a new IFRS, accurately summarised and attributed to a named partner
  3. CA social media post stating that clients who switch to the firm 'always see their audit fee fall and their regulator queries disappear'Correct
  4. DA directory entry stating the firm's registration as an auditor and its areas of specialism

Explanation

The social media post promises outcomes (lower fees, no regulator queries) that the firm cannot guarantee, so it is misleading and creates unrealistic expectations. It may also imply influence over regulators and undermine objectivity and the profession's reputation. The other items are factual and informative, which the Code permits.

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