ACCA BT · Chapter 14 · Question 11 of 11
ACCA's Code adopts a conceptual framework approach to ethics. Which of the following best describes this approach?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Accountants identify threats to compliance with the fundamental principles, evaluate their significance and apply safeguards to eliminate them or reduce them to an acceptable level
Explanation
The conceptual framework requires accountants to identify, evaluate and address threats to the fundamental principles using safeguards, applying judgement to circumstances that rules could not anticipate. It is principles-based rather than a rules-based list of prohibitions, it is not delegated to employers, and it does not require refusal whenever any threat exists, only where threats cannot be reduced to an acceptable level.
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