Question 1

Section A

An accountant working for a public utility company discovers that the company has been illegally dumping toxic waste, which is not disclosed as a contingent liability. The accountant decides to report this to the environmental protection agency.

Which fundamental ethical principle is the accountant prioritizing by making this disclosure?

Accepted Answer

Consider the conflict between confidentiality and the public interest. Reporting illegal acts demonstrates integrity and professional behavior.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Selecting confidentiality, failing to realize that the scenario describes a justified breach of it.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA FA — Financial Accounting Practice Exam 5

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