Section A

A sole practitioner accountant is offered a highly lucrative contract to audit a complex cryptocurrency exchange. The accountant has no prior experience with blockchain technology or crypto-asset valuation. Under the IFAC code, what should the accountant do?

Answer options:

Accept the engagement and learn on the job to expand their skill set.

Decline the engagement due to a lack of professional competence.

Accept the engagement but outsource the entire audit to a third party.

How to approach this question

Apply the principle of Professional Competence and Due Care. If you don't have the skills, you cannot accept the job.

Full Answer

B.Decline the engagement due to a lack of professional competence.✓ Correct

The principle of Professional Competence and Due Care requires accountants to maintain professional knowledge and skill at the level required to ensure clients receive competent professional service. If an accountant lacks the necessary expertise for a highly specialized engagement (like crypto), they must decline it.

Common mistakes

Thinking that 'learning on the job' is an acceptable way to handle a formal audit engagement.

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Practice the full ACCA BT — Business & Technology Practice Exam 4

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