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Hello sir. Once again I am putting forward my question to you please help me solve my doubts. my question is on different types of ethical threats. Could you please explain to me what each means? starting off by
2) self-interest threat
Moreover, if you don’t want to give an explanation tell me the chapter in which this is covered? i will read it through and understand it. thank you
The threats you list are specific to accountants and auditors and are found in the ACCAcode of ethics. This is covered in detail in the Audit and Assurance paper and I don’t think they are part of the BT syllabus. However:
Self-review: this mean checking your own work and this is unlikely to be effective because
1 You are likely to believe you did it right first time
2 You will repeat errors of principle as you know no better
Self interest: for example, agreeing to falsify a report to keep your job.
3 Familiarity: friendship or familiarity with people tends to create trust and that will interfere with auditors’ work.
4 Advocacy: being an advocate (ie a fan of) a client. If you recommend a client to a bank then it becomes harder to reverse your opinion later because you lose face/ become embarrassed.
5 Intimidation threat: physical or other threats to force you to do something unethical.