THREATS TO PROFESSIONAL ETHICS

Question 1

SELF-INTEREST THREAT

Answer 1

FINANCIAL OR OTHER INTEREST WILL INAPPOPRIATELY INFLUENCE ACCOUNTANT’S JUDGMENT OR BEHAVIOUR.
- THREAT TO OBJECTIVITY

Question 2

SELF- REVIEW THREAT

Answer 2

WHEN AN ACCOUNTANT HAS TO REVIEW THEIR OWN WORK PREVIOUSLY MADE.
DOING YOUR OWN REVIEW MAY UNCREASE THE RISK OF NOT DETECTING AN ERROR OR HIDE THE ERROR…
SAFEGUARD –> WOULD BE BETTER A THIRD PARTY TO REVIEW

Question 3

FAMILIARITY THREAT

Answer 3

WHEN A CLIENT IS A FAMILY MEMBER, CLOSE FRIEND OR HAVE A PERSONAL RELANTIONSHIP WITH….
IT CAN AFFECT THE OBJECTIVITY AS BECAUSE OF THE PERSONAL RELANTIONSHIP YOU MAY BECOME TOO SYMPATHETIC TO THEIR INTEREST AND BREAK ETHICAL PRINCIPLES.

Question 4

INTIMIDATION THREAT

Answer 4

WHEN AN EMPLOYER DEMANDS YOU TO DO SOME ACTION UNDER THE THREAT OF FIRING YOU, PAY RISE, BONUS, ETC…
- EMPLOYER/ CLIENT PUTS YOU UNDER PRESSURE , INFLUENCING YOUR OBJECTIVITY IN THEIR FAVOR.

Question 5

ADVOCACY THREAT

Answer 5

WHEN YOU ARE SEEN TO SUPPORT THE CLIENT’S POINT OF VIEW PUBLICLY (EVEN IF IN A COURT OF LAW). THE ADVOCACY THREAT IS SPEAKING ON THE CLIENT’S BEHALF/SUPPORTING THE CLIENT.
BY PROMOTING CLIENTS POSITION, YOU ARE NO LONGER ACTING INDEPENDTLY AND THE OBJECTIVITY MAY BE COMPROMISED.