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ACCA Applied Knowledge · Business and Technology · Regulation and financial crime

Which of the following best describes the purpose of a whistleblowing policy within a company?

A whistleblowing policy gives employees a safe, clearly defined channel to report suspected wrongdoing, inside or outside the organisation, without fear of retaliation. It encourages early detection of malpractice. It does not shift liability from directors or replace internal audit.

  1. ATo give employees a safe, defined route to report suspected wrongdoing internally or externally without fear of retaliationCorrect
  2. BTo allow managers to monitor the private communications of employees
  3. CTo transfer legal liability for fraud from the directors to the employees who report it
  4. DTo replace the need for an internal audit function

Explanation

A whistleblowing policy sets out how staff can raise concerns about malpractice and protects them from victimisation. It does not shift liability, permit surveillance or replace internal audit, which is an independent assurance function.

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