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ACCA Strategic Professional · Strategic Business Reporting (International) · Professional and ethical behaviour in corporate reporting

Which of the following lists correctly sets out the five fundamental ethical principles in the IESBA Code of Ethics that an accountant preparing corporate reports must follow?

The five fundamental principles are integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. Independence applies to assurance engagements, and terms such as transparency, prudence or accountability are not fundamental principles in the IESBA Code.

  1. AIntegrity, objectivity, professional competence and due care, confidentiality, professional behaviourCorrect
  2. BIntegrity, independence, transparency, confidentiality, professional behaviour
  3. CHonesty, objectivity, accountability, confidentiality, professional competence
  4. DIntegrity, objectivity, prudence, transparency, professional behaviour

Explanation

The IESBA Code sets five fundamental principles: integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. Independence is a requirement for auditors rather than a fundamental principle, and transparency, prudence, honesty and accountability are not among the five.

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