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

During a review of expense claims, a trainee accountant notices that a senior manager's claims are consistently round numbers with no receipts. The manager says, 'This is standard practice, just approve them.' Which action best demonstrates professional scepticism?

The best action is to seek supporting documentation and, if none is given, escalate through the appropriate internal channel. This challenges an unsupported assertion and responds to the warning signs proportionately. Approving because of seniority ignores them, while rejecting every claim in the company would be an excessive reaction.

  1. AApprove the claims, as the manager has more experience and authority
  2. BSeek supporting documentation and, if none is provided, raise the matter through the appropriate internal channelCorrect
  3. CReject all expense claims across the company until receipts are supplied

Explanation

Scepticism requires challenging unsupported assertions and obtaining corroborating evidence, then escalating if it is not given. Approving simply because of authority ignores the warning signs. Rejecting all claims company-wide is disproportionate and not a reasoned response to the specific concern.

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