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IFAC

This topic has 1 reply, 2 voices, and was last updated 3 years ago by Ken Garrett.

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December 20, 2020 at 5:23 am #600365
tohir
Member
- Topics: 13
- Replies: 4
As John starts the audit of ABC Company, he tells a colleague that he is very short of money Overhearing this, the
finance director of ABC Company offers him a short term loan, on very favourable terms.
Which of the principles from the IESBA (IFAC) Code of Ethics is threatened here?
A)Professional behaviour
B)Objectivity
C)Trust
December 20, 2020 at 8:32 am #600373
Ken Garrett
Keymaster
- Topics: 10
- Replies: 10536
Obtaining a ‘soft’ loan leaves the auditor beholden to the lender for the favour and this would interfere with objectivity and the auditor would not want to upset the lender.
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