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ACCA Applied Knowledge · Business and Technology · Fundamental principles of ethical behaviour

Which of the following is an example of a threat to objectivity, rather than to any other fundamental principle?

Being offered a substantial gift by a supplier whose invoices he approves threatens objectivity, because the self-interest could bias his judgement. Disclosing client data concerns confidentiality, and failing to update knowledge of standards concerns professional competence and due care.

  1. AAn accountant discloses client sales data to a friend at a social event
  2. BAn accountant is offered a substantial gift by a supplier whose invoices he approvesCorrect
  3. CAn accountant fails to update his knowledge of new accounting standards

Explanation

A substantial gift from a party whose invoices the accountant approves creates a self-interest threat that may bias his judgement, so it threatens objectivity. Disclosing client data breaches confidentiality. Failing to keep knowledge up to date breaches professional competence and due care.

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