A management accountant is pressured by the CEO to backdate a large sales invoice to the previous financial year to ensure the company hits its bonus targets. If the accountant complies, which fundamental IFAC ethical principle is most directly breached?

Answer options:

Confidentiality

Professional Competence and Due Care

Integrity

Objectivity

How to approach this question

Identify the nature of the act: it is deliberate lying/fraud. Match this to the principle of honesty.

Full Answer

C.Integrity✓ Correct

The IFAC principle of Integrity requires professional accountants to be straightforward and honest in all professional and business relationships. Falsifying documents (like backdating an invoice) is a direct violation of integrity.

Common mistakes

Choosing Objectivity. Objectivity is about not letting bias override judgment. Integrity is about not lying or associating with false information.

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