Ethical conflict resolution

The Code recognises that there may be circumstances when the responsibility of a professional accountant to her/his employing organisation and her/his obligations to the Code’s fundamental principles are in conflict.

This could also be described as an ethical dilemma. Some examples of ethical dilemmas or potential conflicts with the fundamental principles include:

Being expected to
  • act contrary to law, regulation, or technical or professional standards
  • facilitate unethical or illegal earnings management strategies
  • lie to, or otherwise intentionally mislead (including misleading by remaining silent) others, in particular the auditors of the employing organisation or regulators
  • issue, or otherwise be associated with, a financial or non-financial report that materially misrepresents the facts, including statements in connection with, for example the financial statements, tax compliance, legal compliance, or reports required by securities regulators