ExpertMedium2 marksMultiple Choice
ACCA · Question 30 · Business & Technology
Section A
"CryptoAccountants" is a small firm specializing in local retail businesses. They are offered a highly lucrative contract to audit a decentralized finance (DeFi) cryptocurrency exchange. The partners accept the job immediately, despite having no staff who understand blockchain technology or crypto regulations.
Which IFAC fundamental principle has the firm breached by accepting this engagement?
Section A
"CryptoAccountants" is a small firm specializing in local retail businesses. They are offered a highly lucrative contract to audit a decentralized finance (DeFi) cryptocurrency exchange. The partners accept the job immediately, despite having no staff who understand blockchain technology or crypto regulations.
Which IFAC fundamental principle has the firm breached by accepting this engagement?
Answer options:
A.
Integrity
B.
Objectivity
C.
Professional Competence and Due Care
D.
Confidentiality
How to approach this question
Identify the missing element: the firm lacks the knowledge and skills (competence) to do the job.
Full Answer
C.Professional Competence and Due Care✓ Correct
The principle of Professional Competence and Due Care requires an accountant to maintain professional knowledge and skill at the level required to ensure that a client receives competent professional service. Accepting an engagement without the necessary expertise breaches this.
Common mistakes
Choosing Integrity, assuming it is 'dishonest' to take the job. The specific technical breach is Competence.
Practice the full ACCA BT — Business & Technology Practice Exam 3
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