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

Which of the following is the best description of why an accountant should document the details of an ethical issue, the discussions held and the decisions taken?

Documenting the issue, discussions and decisions creates a record that can support the accountant's position if their actions are later questioned. It does not guarantee a favourable outcome and does not remove the duty to comply with the fundamental principles.

  1. AIt provides a record that may support the accountant's position if their actions are later questionedCorrect
  2. BIt guarantees that the ethical issue will be resolved in the accountant's favour
  3. CIt removes the accountant's obligation to comply with the fundamental principles

Explanation

Documentation gives evidence of the issue, the steps taken and the reasoning, which is useful if the accountant's conduct is later reviewed. It cannot guarantee any outcome and never replaces the duty to comply with the fundamental principles.

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