Skip to content

ACCA Strategic Professional · Strategic Business Leader · Professionalism, ethical codes and the public interest

Tomas, a professional accountant in business at Brightwell Energy, is asked by the finance director to approve a revenue recognition treatment he believes breaches IFRS. He has discussed his concerns with the director, who refused to change it. Following the usual ethical conflict resolution approach, what should Tomas do NEXT?

Tomas should escalate through the organisation's internal channels, such as the audit committee or non-executive directors, and keep written records of the discussions. Going to the press or resigning silently skips the internal resolution steps, and simply complying would breach his duty of integrity and professional behaviour.

  1. AFollow the established internal escalation route, such as the audit committee or non-executive directors, and document the matterCorrect
  2. BReport the matter immediately to the press to protect the public interest
  3. CResign at once without telling anyone why
  4. DApprove the treatment because the finance director is senior and carries responsibility

Explanation

Conflict resolution starts with the facts, the principles involved and internal procedures, then discussing with those concerned and escalating to higher levels such as the audit committee, while keeping written records. Immediate external disclosure skips internal steps. Silent resignation or compliance with the instruction would fail the duty to act with integrity and professional behaviour.

Did you get it right without looking?

One question tells you little. A timed set on Professionalism, ethical codes and the public interest shows your real accuracy, how long you take and where you lose marks.

Practise Professionalism, ethical codes and the public interestFree diagnostic mock

More Professionalism, ethical codes and the public interest questions