The CA Hub

CAF-8 · Chapter 13 · Question 13 of 20

The CEO of an audit client threatens to replace the audit firm and withhold all outstanding fees if the engagement partner issues a qualified audit opinion. What type of ethical threat is this?

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: B) Intimidation threat

Explanation

An intimidation threat occurs when a chartered accountant is deterred from acting objectively because of actual or perceived pressures, such as a direct threat of dismissal or litigation by the client's management.

All 20 questions in Chapter 13Professional Ethics and Code of Conduct MCQs with answers

More Professional Ethics and Code of Conduct MCQs

Sponsored slot availableRun a CA academy or hiring firm? Put your name in front of students preparing for this exam.Advertise →