Page 30 - AAA Integrated Workbook STUDENT S18-J19
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Chapter 3
2.2 Conflicts within the fundamental principles
An auditor or accountant may find themselves being asked to breach the
fundamental principles by an employer e.g. if being asked to misrepresent the
financial statements or being asked to lie to the auditor.
The professional accountant should always apply the conceptual framework, which
requires assessment of the significance of the threat and the application of an
appropriate safeguard.
Appropriate safeguards include:
Seeking advice from within the employer (e.g. Human Resources department).
Seeking advice from the ACCA or other independent professional advisor.
Using the organisation's formal dispute resolution process.
Seeking legal advice.
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