ACCA Advanced Audit and Assurance (AAA) Practice Exam

Which of the following reflects the principle of integrity in business relationships?

1. Maintaining confidentiality at all times

2. Being straightforward and honest

3. Utilizing aggressive sales tactics

4. Avoiding conflicts of interest

The correct answer is: Being straightforward and honest

The principle of integrity in business relationships fundamentally revolves around being honest and straightforward in all dealings. This means that individuals and organizations should communicate truthfully and transparently, fostering trust and reliability in professional interactions. Upholding integrity ensures that all parties involved in a business relationship can depend on one another to act without deception or misrepresentation. In contrast, maintaining confidentiality is more about privacy and trust rather than the honesty that integrity emphasizes. Utilizing aggressive sales tactics does not align with integrity, as it often involves high-pressure approaches that can lead to misleading or distorted representations of a product or service. Avoiding conflicts of interest is important for ethical conduct, but it does not specifically address the core aspect of being straightforward and honest. Therefore, being straightforward and honest best embodies the principle of integrity in business relationships.