ExpertMedium2 marksMultiple Choice
ACCA · Question 18 · Syllabus F: Professional ethics
[Section A] An accountant discovers that their employer is deliberately falsifying tax returns to evade corporate taxes. The accountant refuses to be associated with the fraudulent returns and reports the matter to the appropriate regulatory authorities. Which IFAC fundamental principle is the accountant primarily upholding by refusing to be associated with false information?
[Section A] An accountant discovers that their employer is deliberately falsifying tax returns to evade corporate taxes. The accountant refuses to be associated with the fraudulent returns and reports the matter to the appropriate regulatory authorities. Which IFAC fundamental principle is the accountant primarily upholding by refusing to be associated with false information?
Answer options:
A.
Objectivity
B.
Integrity
C.
Professional Competence and Due Care
D.
Confidentiality
How to approach this question
Recall the definition of Integrity in the IFAC code, which explicitly mentions not being associated with false information.
Full Answer
B.Integrity✓ Correct
The principle of Integrity implies fair dealing and truthfulness. Crucially, the IFAC code states that a professional accountant shall not knowingly be associated with reports, returns, or communications where they believe the information contains a materially false or misleading statement.
Common mistakes
Selecting Confidentiality. While whistleblowing touches on confidentiality exceptions, the act of refusing to participate in a lie is rooted in Integrity.
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