ACCA Strategic Business Reporting (SBR) Practice Exam

What should an accountant do if ethical issues cannot be resolved?

1. Consult with peers in their profession

2. Seek advice from regulatory bodies only

3. Consider resignation from their position

4. Notify the public about the ethical issues

The correct answer is: Consider resignation from their position

When ethical issues become insurmountable within the context of accounting, considering resignation from a position is a prudent step for an accountant. This course of action underscores the importance of maintaining professional integrity and ethical standards in accounting practices. A professional faced with unresolved ethical dilemmas is often placed in a position where their ability to uphold the principles of honesty, objectivity, and integrity may be compromised. Resigning can be seen as a method to dissociate from circumstances that may lead to unethical practices or that could damage their professional reputation. Moreover, resignation emphasizes a commitment to ethical values over personal or organizational interests. It serves as a protective mechanism for both the individual accountant and the profession as a whole, reflecting a serious stance on the necessity of ethical compliance. This decision can also stimulate discussions about ethical standards and practices within the organization or industry, potentially leading to reforms that enhance ethical governance in the future. While consulting with peers and seeking advice from regulatory bodies can be beneficial steps to explore possible resolutions, they may not necessarily lead to the resolution of the ethical issue at hand. Furthermore, notifying the public about the ethical issues could jeopardize confidentiality and lead to legal repercussions, unless properly warranted and aligned with legal obligations.