- This topic has 3 replies, 2 voices, and was last updated 4 months ago by
.
- Posts
For exam purpose, is it alright to answer as such:-
“Gifts may be accepted if it is trivial but auditors should be independence in appearance (be seen as independent), Therefore gifts from client should be rejected.” ?The IESBA Code of Ethics for Professional Accountants states:
Accepting gifts or hospitality from an audit client may create self-interest and familiarity threats. If a firm or a member of the audit team accepts gifts or hospitality, unless the value is trivial and inconsequential, the threats created would be so significant that no safeguards could reduce the threats to an acceptable level. Consequently, a firm or a member of the audit team shall not accept such gifts or hospitality.
So, obviously trivial gifts can be accepted. I take you point about appearing independent as well a being independent, but these very small gifts are unlikely to threated even the appearance of independence.
That doesn’t mean that an audit firm cannot decide to ban all gifts. THat might be simpler than assessing triviality.
Accepting gifts could be considered to present which of the following threats?
1) self interest threat
2) Advocacy threat
3) familiarity threat
4)Intimidation threat
Option A) 1&3
Option B) 1,2,3&4
Option C) 1,3&4
Option D) 1 only
- You must be logged in to reply to this topic.