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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Self interest threat
Hello Sir, hope youre doing good
Could you please elaborate on this threat;
“Commercial pressure from outside the employing organization”
What is commercial pressure?
Commerce essentially means business. So, for example, for listed companies there will be commercial pressure on management (directors) to maintain/improve share prices. Directors have a self-interest in meeting these expectations because the shareholders can remove directors (by simple majority).
Thank you sir
Im sorry to bother you again over this but can you please clear how is this a self interest threat to an independent auditor? Please help
It isn’t – it is an example of a circumstance that may create self-interest threats for a professional accountant in BUSINESS – not in practice.
Thank you. Kaplan kit mustve written it incorrectly