ACCA Strategic Professional · Advanced Audit and Assurance (International) · Code of Ethics for Professional Accountants
Marco is an audit senior at Verity LLP. Verity's client Orion plc has asked him to sign off a complex financial instrument valuation. Marco has no experience of such instruments, and no specialist is available, but he fears being seen as weak if he refuses. Which fundamental principle is most directly threatened if he signs off the work without further action?
Professional competence and due care is threatened. Marco would be performing work beyond his knowledge and skill without specialist help or adequate supervision, risking an incompetent valuation review. The Code requires accountants to maintain competence and act diligently, so he should seek help or decline the work.
- AIntegrity
- BProfessional competence and due careCorrect
- CObjectivity
- DConfidentiality
Explanation
This principle requires accountants to attain and maintain the professional knowledge and skill needed to provide competent service and to act diligently in accordance with applicable standards. Undertaking work beyond his competence without help breaches it. Integrity relates to straightforwardness and honesty, which is not the main issue as no deception is described.
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