ExpertMedium2 marksMultiple Choice
ACCA · Question 26 · Business & Technology
Section A
An accountant at "EcoAudit" is preparing a sustainability report for a client. The client's CEO asks the accountant to omit a recent incident where the company illegally dumped toxic waste, arguing that "it was a one-off mistake and will ruin our reputation."
If the accountant agrees to omit this information, which IFAC fundamental principle is primarily breached?
Section A
An accountant at "EcoAudit" is preparing a sustainability report for a client. The client's CEO asks the accountant to omit a recent incident where the company illegally dumped toxic waste, arguing that "it was a one-off mistake and will ruin our reputation."
If the accountant agrees to omit this information, which IFAC fundamental principle is primarily breached?
Answer options:
A.
Confidentiality
B.
Professional Competence and Due Care
C.
Integrity
D.
Professional Behaviour
How to approach this question
Identify the core issue: the accountant is being asked to lie or mislead by omission. This is a breach of honesty.
Full Answer
C.Integrity✓ Correct
The principle of Integrity states that a professional accountant should be straightforward and honest. They must not be associated with reports, returns, or communications that they believe contain a materially false or misleading statement, or omit/obscure information.
Common mistakes
Choosing Objectivity. While bias might be involved, the deliberate omission of material facts is a direct breach of Integrity.
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