5. About ACCA's Fundamental Principles

In Review

Select the principle or principles that would be violated for each action. There may be other principles that you might think have been violated, but the most significant ones are listed in the answer.

If you did this:

You could be violating this fundamental principle:

Issue a financial statement that you know to be incorrect.

Act against the interest of a group of stakeholders by complying unquestioningly with an unreasonable request made by a senior colleague, who has power and influence over you.

Repeat insider knowledge that you obtained while working in a client's office.

Place an advertisement in the local paper saying that you've been in business for 20 years, when you have not.

Reduce the provision for bad debts for trade receivables without supporting information to validate your action.

Disclose financial information about a client at a dinner party.

Ignore CPD courses offered by ACCA because you studied hard enough as a student.

Encourage your client to avoid paying taxes by helping them to falsify their financial accounts.

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