Whereas principle-based approach focuses on theories of the importance of general principles and it is a more flexible approach, and can cover new situations that might not have been thought of. ACCA follows the principles-based approach and it is binding on all members of ACCA. Besides that, I’ve learned the five ACCA’s fundamental principles, these are integrity, objectivity, professional competence and due care, confidentiality, and professional behavior. However, there are threats may affect the compliance to these fundamental principles, those threats are self-interest, self-review, advocacy, familiarity and intimidation.
Finally, I have learned the framework that provides guidance to identify, evaluate and respond to threats to compliance with the fundamental principles. The application of framework consists of four steps: – •Firstly to identify the real issue, •Secondly to determine if any of the fundamental principles are threatened, •Thirdly to determine if the threats are significant and •Finally we need to see if safeguards can be put in place to mitigate the ethical threats This ethical dilemma resolution process helps professional accountant to fulfill their obligation by making ethical decisions.