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Syllabus F: Professional ethicsSection ASyllabus FProfessional EthicsEthical Threats

ACCA · Question 46 · Syllabus F: Professional ethics

If a client threatens to sue their audit firm if the firm does not issue a clean audit report, what specific type of ethical threat is created? (Type the single word threat type)

How to approach this question

Recall the 5 structural threats. Which one involves being bullied or threatened?

Full Answer

An intimidation threat occurs when a professional accountant is deterred from acting objectively because of actual or perceived pressures, including attempts to exercise undue influence over the accountant (e.g., threats of litigation or dismissal).

Common mistakes

Typing 'Self-interest'. While the firm has an interest in not being sued, the direct action of threatening creates an Intimidation threat.

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