- This topic has 1 reply, 2 voices, and was last updated 8 years ago by
.
- Posts
Gemma is a CIMA member, working as Financial Controller of a listed public company.
The company is in the process of applying for additional loan finance. Gemma has been
asked to write to the company’s bank, providing a forecast of future cash flows which she
knows to be very optimistic. .According to CIMA’s Code of Ethics, which TYPE of ethical threat does this represent?
A self interest
B self review
C advocacy
D intimidation
E familiarity
Answer is C. Can you explain why correct answer is C?Advocacy threats arise where a CIMA member or student promotes a point of view or
opinion to the extent that objectivity is compromised. An example would be where an
accountant promotes the shares in a listed company or supports the company in some sort of dispute. CIMA members and students should take care no to overstate the case for any
decision of recommendation. You can give the facts but you mustn’t cross into giving unwarranted support.(OT Notes )
- You must be logged in to reply to this topic.