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IAI Actuarial Core Principles · Business Management · Characteristics of a profession and the Actuaries' Code

Rahul, an actuary in Pune, is told by his employer to sign a report using an assumption he believes is unreasonably optimistic, because a client prefers it. Which view best reflects the professional characteristic of putting the public interest and integrity ahead of the client's or employer's wishes?

Rahul should refuse to sign a report he believes is misleading and should disclose his concerns or escalate as professional guidance requires. Professional duty to integrity and the public interest outranks employer or client preference, and silent signing or later review does not cure the problem.

  1. AHe should sign, because the employer pays his salary and the client is always right
  2. BHe should sign but add no comment so the client is not upset
  3. CHe should refuse to sign a report he believes is misleading and, if necessary, disclose the limitation or escalate in line with professional guidanceCorrect
  4. DHe should resign from the professional body immediately
  5. He should sign and ask a junior colleague to review it afterwards

Explanation

A professional must not allow commercial pressure to compromise integrity or produce misleading advice. He should decline, or clearly disclose his concerns and escalate. Signing silently or having a junior review later does not remove the problem, and resigning membership is not required.

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