ExpertMedium2 marksMultiple Choice
ACCA · Question 26 · Syllabus F: Professional ethics
An accountant at AuditGlobal discovers that a client has deliberately omitted a significant liability from their financial statements to secure a bank loan. The accountant refuses to sign off on the accounts and informs the client that the statements must be corrected.
Which IFAC fundamental principle is the accountant primarily upholding by refusing to be associated with misleading information?
An accountant at AuditGlobal discovers that a client has deliberately omitted a significant liability from their financial statements to secure a bank loan. The accountant refuses to sign off on the accounts and informs the client that the statements must be corrected.
Which IFAC fundamental principle is the accountant primarily upholding by refusing to be associated with misleading information?
Answer options:
A.
Integrity
B.
Objectivity
C.
Confidentiality
D.
Professional Competence and Due Care
How to approach this question
Recall the definition of Integrity in the IFAC code: being straightforward, honest, and refusing to be associated with misleading information.
Full Answer
A.Integrity✓ Correct
The IFAC principle of Integrity implies fair dealing and truthfulness. Crucially, it states that a professional accountant shall not knowingly be associated with reports, returns, or communications that contain a materially false or misleading statement.
Common mistakes
Selecting Objectivity. While related, Objectivity is about bias/undue influence. Integrity is the specific principle violated when lying or hiding facts.
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