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

Which of the following is the best reason why an accountant should document the details of an ethical conflict and how it was discussed and resolved?

Documentation gives evidence of the facts, the ethical issues, the people consulted, the actions taken and the reasoning for the decision. It helps the accountant justify their conduct later, but it cannot guarantee immunity from discipline or replace proper consultation.

  1. AIt provides evidence of the issues considered, the actions taken and the reasoning behind the decisionCorrect
  2. BIt guarantees that the accountant cannot be disciplined by the professional body
  3. CIt removes the need to consult anyone else about the conflict

Explanation

Keeping a record of facts, ethical issues, discussions, courses of action and the decision reached supports the accountant's position if the matter is later questioned. It does not guarantee immunity from discipline. It also does not replace consultation, which remains an important part of resolving conflicts.

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