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

The ACCA Code of Ethics and Conduct, based on the IESBA Code, is mainly described as taking which approach?

The ACCA Code of Ethics is mainly principles-based. It sets fundamental principles and a conceptual framework under which the accountant identifies, evaluates and addresses threats to compliance, rather than listing every prohibited act, so judgement is needed in each situation.

  1. AA purely rules-based approach listing every prohibited act
  2. BA principles-based approach built on fundamental principles, with a conceptual framework to identify, evaluate and address threatsCorrect
  3. CAn approach with no guidance on threats or safeguards
  4. DA approach that applies only to members in practice and not to those in business

Explanation

The Code sets out fundamental principles and a conceptual framework requiring the accountant to identify, evaluate and address threats to compliance. It is not a complete list of prohibitions, so the rules-only option is wrong. It also applies to professional accountants in business as well as in practice.

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