Threats to the Principles of Ethical Behaviour Flashcards
What is self interest?
The threat that financial or other interest or inappropriately influenced the accountants judgement or behaviour e.g. an accountant is a shareholder in a client company.
What is self review?
The threat that an accountant will not appropriately evaluate the results of a previous judgement made or professional services performed e.g. an individual auditing financial statements that are prepared by themselves
What is advocacy?
The fact that an accountant will promote a clients or employers position to the point that the accountants objectivity is compromised e.g. accountant is involved in selling the shares of a client company
What is familiarity?
The threat that due to a long or close relationship with a client or employer, an accountant will be too sympathetic to their interests or to accepting of their work e.g. an accountant is related to the director of the client company
What is intimidation?
The threat that an accountant will be deterred from acting objectively because of actual or perceived pressures, including attempts to exercise undue influence over the accountant e.g. accountant may be threatened by a client to put or remove something from the accounts.
