Question 1

[Section A] A senior auditor has been assigned to lead the external audit of 'AgriGrow Ltd'. Prior to joining the audit firm three months ago, this same individual was the Financial Controller at AgriGrow Ltd, where they designed the company's current internal control systems. According to the IFAC code of ethics, which structural threat is MOST prominent in this scenario?

Accepted Answer

Identify the core conflict: the auditor is evaluating systems they personally built.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Selecting Familiarity threat. While the auditor knows the staff, the specific act of auditing systems they built is the textbook definition of a self-review threat.

How to approach this question

Full Answer

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