ExpertMedium2 marksMultiple Choice
ACCA · Question 28 · Business & Technology
Section A
An IT auditor at "SysImplement" spent six months designing and installing a new financial reporting software for a client. The following year, the same auditor is assigned to perform the external audit on that client's financial statements, which were generated by the software he installed.
Which ethical threat is most prominent in this scenario?
Section A
An IT auditor at "SysImplement" spent six months designing and installing a new financial reporting software for a client. The following year, the same auditor is assigned to perform the external audit on that client's financial statements, which were generated by the software he installed.
Which ethical threat is most prominent in this scenario?
Answer options:
A.
Self-interest threat
B.
Self-review threat
C.
Advocacy threat
D.
Familiarity threat
How to approach this question
Identify what the auditor is doing: auditing his own previous work. This creates a self-review threat.
Full Answer
B.Self-review threat✓ Correct
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.
Common mistakes
Choosing Familiarity threat because the auditor spent six months there. While possible, the direct threat of auditing one's own system design is Self-review.
Practice the full ACCA BT — Business & Technology Practice Exam 3
52 questions · hints · full answers · grading
More questions from this exam
Q01Section A
"AeroDrones Ltd" is a technology startup specializing in autonomous delivery drones. R...MediumQ02Section A
"GreenHarvest" is a large agro-tech firm planning to build a new processing facility. ...EasyQ03Section A
"AquaPure" operates a municipal desalination plant providing essential drinking water ...MediumQ04Section A
"Solaris" manufactures residential solar panels. Recently, a breakthrough in cheap, re...MediumQ05Section A
"MediCare Mutual" is a healthcare provider that is entirely owned by the patients who ...Easy