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    PracticeACCAACCA BT — Business & Technology Practice Exam 4Question 30
    Medium2 marksMultiple Choice
    Syllabus F: Professional ethicsSyllabus FProfessional EthicsObjectivityAI Ethics

    ACCA · Question 30 · Syllabus F: Professional ethics

    Section A

    LendAI uses algorithmic models to determine loan eligibility. The lead data scientist, an ACCA member, notices that the algorithm systematically denies loans to applicants from specific postal codes, regardless of their actual credit score. Management tells her to ignore it because the model is highly profitable. If she ignores the bias, which fundamental principle is most at risk?

    Answer options:

    A.

    Confidentiality

    B.

    Objectivity

    C.

    Professional Competence

    D.

    Advocacy

    How to approach this question

    The core issue is 'bias' in the system and 'undue influence' from management to ignore it. The principle that demands accountants remain free from bias and undue influence is Objectivity.

    Full Answer

    B.Objectivity✓ Correct
    The principle of Objectivity imposes an obligation on all professional accountants not to compromise their professional or business judgment because of bias, conflict of interest, or the undue influence of others. By yielding to management's pressure to ignore a known algorithmic bias, the accountant is compromising her objectivity.

    Common mistakes

    Selecting Integrity. While Integrity is also compromised (she is not being straightforward), Objectivity is the specific principle dealing with bias and undue influence.
    Question 29All questionsQuestion 31

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