Skip to content

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

When an accountant in business identifies a threat to compliance with the fundamental principles, what is the correct next step if the threat is not at an acceptable level?

The accountant should apply safeguards to eliminate the threat or reduce it to an acceptable level, and if that is not possible, decline or end the activity or relationship causing it. Immediate resignation is not always required.

  1. AIgnore it if the employer has not complained
  2. BApply safeguards to eliminate or reduce it to an acceptable level, or decline or end the activity if this is not possibleCorrect
  3. CResign immediately in every case
  4. DReport it to the external auditor only

Explanation

The conceptual framework requires identifying, evaluating and addressing threats. If they cannot be reduced to an acceptable level by eliminating the circumstances or applying safeguards, the accountant should decline or end the activity. Immediate resignation in every case is not required.

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