BUAW 6 - Threats & Safeguarding Flashcards
Principles based approach meaning
is evaluating and addressing the threats to their compliance with their fundamental principles rather than rule based
What are the 5 threats
-Self-interest
-Self-review
-Familiarity
-Intimidation
-Advocacy
Self-interest is..
financial or other interest will influence the accountants behaviour or judgement
Self-review is…
accountant has to re-evaluate a judgement that they previously worked on.
Familiarity is…
Close relation to an accountant that can influence and become sympathetic to the interests of others
Intimidation is…
Accountant deterred from acting objectivity because of real/perceived threats
advocacy is…
Accountants promotes a position or opinion ( of a client) that their objectivity becomes compromised.
What are some safeguarding against these threats in practice
1.strong quality control procedures
2. internal policies and procedures
3. leadership culture
What are some safeguarding against these threats in business
-ethics and conduct programmes
-strong internal systems
-disciplinary processes
Safeguards created by the accounting profession, leg & reg
-educational, training and experience
- continuing professional development requirements
-professional accounting standards
-external review of reports, returns, communications or info produced
which of the 5 principles does self interest and familiarity apply to
all
which of the 5 principles does intimidation threat apply to
integrity, objectivity, confidentiality
which of the 5 principles does self-review apply to
objectivity, professional behaviour and professional competence and due care
which of the 5 principles does advocacy apply to
objectivity
