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    PracticeACCAACCA BT — Business & Technology Practice Exam 6Question 30
    Easy2 marksMultiple Choice
    Professional ethicsSection ASyllabus FEthical Threats

    ACCA · Question 30 · Professional ethics

    An accounting firm is hired to design and implement a new Enterprise Resource Planning (ERP) system for a client. Six months later, the same accounting firm is appointed to conduct the statutory external audit of that client, which relies heavily on the data generated by the new ERP system. What ethical threat is present?

    Answer options:

    A.

    Self-interest threat

    B.

    Self-review threat

    C.

    Advocacy threat

    D.

    Intimidation threat

    How to approach this question

    The firm built the system, and now they have to audit it. They are reviewing their own work. This is a Self-review threat.

    Full Answer

    B.Self-review threat✓ Correct
    A self-review threat arises when a professional accountant is required to evaluate the results of a previous judgment or service performed by their own firm. Auditing an IT system that the firm itself implemented is a classic example.

    Common mistakes

    Failing to recognize that implementing an IT system impacts the financial data that will later be audited.
    Question 29All questionsQuestion 31

    Practice the full ACCA BT — Business & Technology Practice Exam 6

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