Skip to content

ACCA Strategic Professional · Strategic Business Reporting (International) · Professional and ethical behaviour in corporate reporting

Which feature is most typical of an effective internal whistleblowing policy supporting ethical financial reporting?

An effective whistleblowing policy offers a confidential reporting channel independent of management, such as the audit committee, and protects reporters from retaliation. Restricting reports to the implicated manager or waiting for auditors would discourage disclosure and weaken ethical reporting.

  1. AReports must be made only to the line manager involved in the issue
  2. BAnonymous reporting is prohibited to ensure accountability
  3. CA confidential channel to someone independent of management, such as the audit committee, with protection from retaliationCorrect
  4. DEmployees are discouraged from reporting until external auditors have found the problem

Explanation

Effective policies provide independent, confidential reporting routes and protect reporters. Forcing reports to the implicated manager or banning anonymity discourages disclosure, and waiting for auditors defeats the purpose.

Did you get it right without looking?

One question tells you little. A timed set on Professional and ethical behaviour in corporate reporting shows your real accuracy, how long you take and where you lose marks.

Practise Professional and ethical behaviour in corporate reportingFree diagnostic mock

More Professional and ethical behaviour in corporate reporting questions