ACCA Strategic Professional · Advanced Audit and Assurance (International) · Code of Ethics for Professional Accountants
Tomas, an audit manager, has escalated a disagreement with the engagement partner over the treatment of a material provision to the firm's ethics partner, but the matter remains unresolved after internal consultation. Which action is most consistent with the IESBA Code?
Tomas should document the issue, the discussions and the decisions made, and consider seeking advice from his professional body or legal counsel. Breaching confidentiality, destroying papers or silently accepting the partner's view would contravene the fundamental principles of the Code.
- ADocument the substance of the issue, the discussions held and the decisions taken, and consider obtaining advice from a professional body or legal counselCorrect
- BDisclose the full details to the client's competitor to pressure the partner
- CDestroy his working papers on the provision so that no conflicting evidence remains
- DAccept the partner's view without record because the discussion was confidential
Explanation
Where a conflict cannot be resolved, the Code suggests documenting the issue and the discussions, and seeking advice from the professional body or legal counsel. Disclosure to a competitor breaches confidentiality, and destroying papers or staying silent undermines integrity and professional behaviour.
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