ACCA Applied Knowledge · Business and Technology · Fundamental principles of ethical behaviour
Which of the following is MOST likely to be a safeguard in the work environment that helps an accountant comply with the fundamental principles?
An ethics hotline and a culture where staff can raise concerns without fear of retaliation is a work environment safeguard. The other options, such as rewarding revenue targets, forbidding questions of senior management or cutting reviews, would increase ethical threats rather than reduce them.
- AEngagement-specific rules that reward staff for meeting revenue targets
- BAn ethics hotline and an organisational culture that encourages staff to raise concerns without fear of retaliationCorrect
- CA policy that employees must not question instructions from senior management
- DReducing the number of internal review procedures to save time
Explanation
Work environment safeguards include ethics hotlines, strong governance and a culture that supports raising concerns. Revenue-based reward, discouraging questions and weakening review all increase ethical pressure and threats.
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