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ACCA Applied Knowledge · Business and Technology · The role of regulatory and professional bodies in promoting ethical and professional standards in the accountancy profession

The ACCA Code of Ethics and Conduct takes a conceptual framework approach to ethics rather than a purely rules-based one. Which statement best describes this approach?

Under the conceptual framework approach, members identify threats to the fundamental principles, evaluate how significant they are, and address them through safeguards or by eliminating them or declining the work. It relies on professional judgement rather than a fixed list of rules, and client consent does not remove the threats.

  1. AMembers must follow a fixed list of prohibited actions and no judgement is needed
  2. BMembers identify, evaluate and address threats to compliance with the fundamental principles, applying safeguards where neededCorrect
  3. CMembers need only comply with the laws of the country where they practise
  4. DMembers may ignore threats if the client consents in writing

Explanation

The framework requires members to identify threats, evaluate their significance, and address them by eliminating them or applying safeguards, or by declining or ending the engagement. A rules-only list would not cover every situation, and legal compliance alone or client consent does not remove ethical threats.

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