Question 1

Section A

EcoCorp's Chief Financial Officer, an ACCA member, is finalizing the annual sustainability report. The CEO asks the CFO to remove a section detailing a recent toxic spill, arguing that it will hurt the stock price and that the spill was 'mostly cleaned up anyway'. If the CFO complies and signs off on the altered report, which IFAC fundamental principle is most directly breached?

Accepted Answer

Recognize that the CFO is being asked to lie by omission. The IFAC code explicitly states that a professional accountant shall not knowingly be associated with reports that omit or obscure information. This is the definition of a breach of Integrity.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Choosing Objectivity. While the CFO's objectivity is threatened by the CEO's pressure, the actual act of signing a misleading report is a direct breach of Integrity.

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Full Answer

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