ExpertEasy1 markMultiple Choice
ACCA · Question 45 · Syllabus F: Professional ethics
Which of the following is a clear example of an 'Intimidation threat' under the IFAC code of ethics?
Which of the following is a clear example of an 'Intimidation threat' under the IFAC code of ethics?
Answer options:
A.
An auditor owning shares in the client company.
B.
A client threatening to dismiss the audit firm if they do not agree with an aggressive accounting treatment.
C.
An auditor preparing the financial statements and then auditing them.
How to approach this question
Look for an action that involves bullying, threats, or undue pressure.
Full Answer
B.A client threatening to dismiss the audit firm if they do not agree with an aggressive accounting treatment.✓ Correct
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 them (e.g., threat of dismissal or litigation).
Common mistakes
Confusing intimidation with self-interest (since losing the client costs money). The act of threatening makes it intimidation.
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