ACCA Applied Knowledge · Business and Technology · Ethical conflicts and dilemmas
Priya, a trainee accountant, is told by her finance director to leave out a material liability from the draft accounts so that a bank loan is approved. Which fundamental principle is most directly threatened by this request?
Integrity is most directly threatened. Deliberately leaving out a material liability to mislead a bank is dishonest and not straightforward, which breaches the requirement to be honest in professional dealings, rather than raising a primarily competence or confidentiality problem.
- AIntegrityCorrect
- BProfessional competence and due care
- CConfidentiality
- DProfessional behaviour only in relation to marketing
Explanation
Omitting a material liability to mislead the bank is dishonest and shows a lack of straightforward honesty, so integrity is most directly threatened. Due care concerns diligence and skill, and confidentiality concerns disclosure of information, neither of which is the core issue here.
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