Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

122 A – TRUE 
By definition. 
PROFESSIONAL ETHICS IN ACCOUNTING AND BUSINESS 
123 D 
J is arguing that she needed to use the money for an ethical reason, so the theft was 
justifiable. This would be an example of a relativist approach, where actions are justified 
based on their circumstances. The action is not being argued to be for the ‘greater good’ or 
for all stakeholders (presumably the theft will not be good for the shareholders of LGH!) so 
J is not a utilitarian or a pluralist. 
124 A – TRUE 
By definition. Professions also require the mastering of specialist skills, governance by a 
professional organisation and a process of certification of new members. 
125 B 
The remaining two ethical principles are integrity and objectivity. 
126 C 
Those failing to observe the standards expected of them may be called before the ACCA’s 
Disciplinary Committee and required to explain their conduct.
The IFAC code (which is the basis of the ACCA code) states in its introduction that ‘a 
professional accountant’s responsibility is not exclusively to satisfy the needs of an 
individual client or employer.’ 
The professional accountant, therefore, has a duty to act in the public interest as well as in 
the interests of his employer and the shareholders. 
 
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ANSWERS TO PRA C TICE O BJECTIVE TEST QUESTIONS :
S EC T I O N 3
K APLA N PUBLISH ING
139 
127 B – FALSE 
The definition given is that of integrity. 
128 A 
Egoists will choose the option that most benefits themselves, which would appear to be 
accepting the bribe. Utilitarians would accept the bribe if it caused a favourable outcome 
for the greatest number of people – not necessarily all stakeholders (this is pluralism). 
129 D 
Professions must have: a process of certification, a period of training leading to the 
mastering of specialised skills, an ethical code and governance by a professional 
organisation. Occupations do not need any of these. Both organisations and professions 
would be expected to comply with legislation. 
130 C 
An accountant should first raise the issue with whoever is in charge of ethics or governance 
within the organisation (i.e. the Compliance Officer). If this does not solve the issue, the 
accountant can take legal/professional advice from their professional body. Finally, if the 
issue is still unresolved, the matter may be reported to the relevant authorities. 
131 B 
H recommended the purchase of the business and is now having to review the quality of 
that decision. This makes it difficult for her to be objective and criticise the prospects of the 
business. 
132 B 
They are all ACCA safeguards, except for B, which is a safeguard that an individual company 
may put in place in order to minimise the risk of unethical behaviour. 
133 B 
Enzo is a utilitarian – looking to benefit the greatest number of people. Note that 
‘individualist’ is not an approach to ethical decision-making.