CAF-2 · Chapter 3 · Question 2 of 15
A manager at a tax consultancy firm instructs his subordinate to ignore certain undocumented expenses while preparing a client's income tax return, stating that it is not their responsibility since it is not an audit engagement. By knowingly ignoring adjustments that render the return materially false, the manager is primarily breaching which principle?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) Integrity
Explanation
The principle of integrity imposes an obligation on all chartered accountants to be straightforward and honest. Knowingly ignoring required adjustments that make a tax return materially false is a breach of integrity and professional behavior.
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