ACCA Strategic Professional · Advanced Audit and Assurance (International) · Advertising, tendering, and obtaining professional work and fees
Harlow & Co, a firm of professional accountants, plans a brochure for prospective audit clients. Under the IESBA Code, which statement in the brochure would be acceptable?
A factual, objective description of services, qualifications and fee basis is acceptable. The Code requires marketing to be honest and truthful and not to make exaggerated or unsubstantiated claims, disparage others, or promise outcomes such as a guaranteed clean opinion.
- AA statement that Harlow & Co is the leading audit firm in the region, with no supporting evidence
- BA factual description of the firm's services, fees structure and qualifications, presented in an objective mannerCorrect
- CA claim that Harlow & Co's audit quality is better than that of named competitor firms
- DAn assertion that the firm can guarantee a clean audit opinion for any client that appoints it
Explanation
The Code requires promotion to be honest and truthful, not creating unrealistic expectations or making unsubstantiated claims. An objective factual description of services and qualifications meets this. Unsupported claims of being the leading firm, comparisons with named competitors and guaranteed opinions all breach the requirements.
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