- 5 Marks
Question
a. Explain briefly FIVE ethical threats that could compromise a professional accountant’s ability to comply with relevant laws and regulations. (5 Marks)
Answer
a. Ethical threats that could compromise a professional accountant’s ability to comply with relevant laws and regulations include:
- Self-interest threat: When a personal financial or other interest may influence the accountant’s judgment or behavior.
- Self-review threat: Occurs when a professional accountant does not properly evaluate their previous judgment or work when performing a new service.
- Advocacy threat: Arises when an accountant promotes a client’s or employer’s position to the point that objectivity is compromised.
- Familiarity threat: Long-standing relationships with a client or employer that can lead to a biased decision.
- Intimidation threat: External pressures or threats that could deter the accountant from acting objectively and independently.
- Tags: Accountants, Ethical Threats, Ethics, Laws and regulations, Professional Conduct
- Level: Level 1
- Uploader: Dotse