Self-interest threat
A self-interest threat arises when a financial or other interest could inappropriately influence a professional accountant’s judgement or behaviour. Its significance depends on the facts, applicable prohibitions and the effectiveness of available safeguards.
Worked example
An audit partner’s substantial financial dependence on one client may create pressure to retain the engagement.
Common mistake
Do not assume disclosure alone removes the threat; some circumstances require eliminating the interest or declining the engagement.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |