Chapter 13: Identifying Threats

Question 1

Self Interest (3)

Answer 1

• Financial/Other Interest
  > that will inappropriately influence
  = judgement or behavior of a CA

Question 2

Self-review (4)

Answer 2

Accountant may not appropriately evaluate results of previous judgements:
- made by him
- activity done by him
- or by someone from his firm

on which(jdgmnt) he will rely on forming his new judgement

Question 3

Advocacy (2)

Answer 3

• CA having promoted a client’s/employer’s position to the point that his objectivity is compromised

Question 4

Familiarity (2-3)

Answer 4

• Long or close relationship with client/employer
• CA will be too sympathetic/accepting of work of client

Question 5

Intimidation (1+2)

Answer 5

• CA will be deterred from acting objectively
• because of:
  > actual/perceived pressures
  > including attempts to exercise undue influence