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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Code of Ethics for Professional Accountants

Mei, an audit junior, learns that her firm's tax team gave aggressive advice to an audit client, and she feels the audit team's review of the related tax provision lacks objectivity. She fears retaliation if she speaks up. Which statement best reflects the Code's guidance on her position?

Mei should raise her concern through the firm's escalation or whistleblowing channels, since the Code applies to accountants at every level and firms should support reporting without fear of retaliation. Staying silent or approaching the client first would be inappropriate.

  1. AShe should not be deterred by pressure, should raise the concern through the firm's escalation or whistleblowing channels, and the firm should have a culture supporting such reportingCorrect
  2. BShe must remain silent because junior staff have no ethical responsibilities
  3. CShe should refuse to work on any other client of the firm
  4. DShe should discuss the matter openly with the client's management first to avoid an internal dispute

Explanation

The Code applies to all professional accountants regardless of seniority, and firms should have a culture and procedures encouraging staff to raise concerns without fear of retaliation. Discussing the audit team's concern with the client first could breach confidentiality and impair independence. Silence or blanket refusal is not proportionate.

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