ExpertMedium2 marksMultiple Choice
ACCA · Question 30 · Syllabus F: Professional ethics
Which TWO of the following scenarios represent a 'Self-review threat' according to the IFAC Code of Ethics? (Select TWO)
Which TWO of the following scenarios represent a 'Self-review threat' according to the IFAC Code of Ethics? (Select TWO)
Answer options:
A.
An auditor discovering a material error in a financial system they personally designed and implemented last year.
B.
An auditor being offered a highly lucrative job as the Financial Controller of the client.
C.
A tax consultant preparing the corporate tax return and then acting as the external auditor for the same figures.
D.
An accountant being threatened with dismissal if they do not sign off on fraudulent accounts.
How to approach this question
Look for situations where the professional is evaluating a judgment or work product that they themselves created previously.
Full Answer
A self-review threat occurs when a professional accountant is required to evaluate the results of a previous judgment made, or service performed, by themselves or another individual within their firm. Options A and C both involve the accountant auditing or reviewing their own prior work.
Common mistakes
Confusing self-review with self-interest. Self-review specifically involves looking back at previous work you did.
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