Ethical Considerations — common mistakes

In Paper 3, questions on ethics are often presented as short scenarios, sometimes as part of a larger question. When answering, structure your response around the five fundamental principles. First, identify which principle(s) are being threatened or breached. Then, explain how the action in the scenario breaches that principle. Finally, suggest a course of action the accountant should take to resolve the ethical conflict, such as consulting with a superior, seeking legal advice, or resigning from the engagement if the issue is not resolved.

Integrity is about being honest and truthful in your actions and communications. It's an internal moral compass. Objectivity is about ensuring your professional judgements are not compromised by external pressures, bias, or conflicts of interest. You can be an honest person (integrity) but still have your judgement swayed by a close relationship with a client (lack of objectivity).

Ethics questions in Paper 3 are typically not long, standalone questions. They are more likely to be integrated into a larger question as a short, written part (e.g., 4-6 marks). You might be given a brief scenario related to the main question's context and asked to 'advise' a person or 'discuss' the ethical implications. Use the five principles as your framework to score well.