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ACCA Strategic Professional · Strategic Business Reporting (International) · Professional and ethical behaviour in corporate reporting

Nadia, a professional accountant in business, discovers her employer is misapplying IFRS 15 in a way that materially overstates revenue. Management dismisses her concerns. According to the ethical approach expected of accountants, what should she do next?

Nadia should escalate through internal procedures such as whistleblowing channels or those charged with governance, take advice and consider legal obligations before any external disclosure. Ignoring the issue would compromise integrity, while secretly altering figures or going to the media would bypass proper process and could breach confidentiality.

  1. AIgnore the matter, as she has voiced her concern once
  2. BFollow the entity's internal escalation and whistleblowing procedures, seek advice and consider her legal obligations before any external disclosureCorrect
  3. CAlter the revenue figures herself in the external report without informing anyone
  4. DImmediately report to the media to protect investors

Explanation

After management dismisses concerns, the accountant should use higher internal levels such as the audit committee or those charged with governance, seek advice and consider legal duties and any right to disclose. Ignoring it fails the duty of integrity, and unilateral alteration or media disclosure bypasses proper processes and may breach confidentiality.

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