Skip to content

ACCA Applied Knowledge · Business and Technology · Ethical conflicts and dilemmas

Under a conceptual-framework approach to ethical conflicts, an accountant has identified a threat to compliance with the fundamental principles. What should the accountant do next?

The accountant should evaluate whether the threat is at an acceptable level. If it is not, they must eliminate the circumstances or apply safeguards to reduce it, and decline or end the activity if that is not possible. Ignoring it or relying on non-discovery is inappropriate.

  1. AIgnore the threat if it is unlikely to be discovered
  2. BEvaluate whether the threat is at an acceptable level, and if not, address it with safeguards or eliminate itCorrect
  3. CImmediately report the matter to the regulator
  4. DAccept the threat if the client is a long-standing one

Explanation

After identifying a threat, the accountant must evaluate its significance. If it is not at an acceptable level, safeguards are applied or the circumstances causing it are eliminated, and if neither works the activity is declined or ended. Immediate regulator reporting is not the standard next step, and discovery risk or client length is irrelevant.

Did you get it right without looking?

One question tells you little. A timed set on Ethical conflicts and dilemmas shows your real accuracy, how long you take and where you lose marks.

Practise Ethical conflicts and dilemmasFree diagnostic mock

More Ethical conflicts and dilemmas questions