Members in business (MIBs)

Question 1

What is a “member in business”?

Answer 1

An accountant who works for a company or a government agency (such as an internal auditor) who is not working as a member in public practice

Question 2

Where do the Conceptual Framework’s safeguards come from regarding members in business?

Answer 2

1. )The profession, legislation, or regulation

2. )Their employer

Question 3

The code sets out seven threats for members in public practice but only six for members in business. Which is not a threat for members in business?

Answer 3

Management participation threat

Question 4

In interacting with their firm’s external auditor, what should members in business do?

Answer 4

Be candid and not mislead.

Question 5

Which area of professional responsibility worries members in public practice but not members in business?

Answer 5

Independence

Question 6

An undue influence threat to integrity and objectivity would arise if MIBS were pressured to:

Answer 6

1. )Become associated with misleading information, or
2. )Deviate from company policy, or
3. )Change a conclusion regarding an accounting or tax provision, or
4. )Hire an unqualified individual