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ACCA Applied Knowledge · Business and Technology · Corporate codes of ethics

The ACCA Code of Ethics and Conduct adopts a principles-based framework. A member faces a situation not covered by any specific example in the Code. What is the most appropriate way for the member to proceed?

The member should apply the fundamental principles through the conceptual framework: identify threats to compliance, evaluate their significance and address them with safeguards or by declining. Lack of a specific rule does not remove ethical obligations, which is the core of a principles-based approach.

  1. AConclude that, as no specific provision applies, no ethical issue arises
  2. BApply the fundamental principles and a conceptual framework to identify, evaluate and address threats to complianceCorrect
  3. CWait for the professional body to issue a specific rule covering the situation before acting

Explanation

The conceptual framework requires members to identify threats to the fundamental principles, evaluate them and apply safeguards or decline the work. Absence of a specific rule does not remove the ethical obligation, and waiting for a new rule is impractical.

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