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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
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.
