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CIMA BA4 · Chapter 3 · Question 6 of 10

A purchasing accountant has dealt with the same supplier's sales director for twelve years and they now holiday together. Which threat is created?

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: B) Familiarity threat

Explanation

A familiarity threat arises when, because of a long or close relationship, a member becomes too sympathetic to another's interests or too accepting of their work. A long-standing personal friendship with a supplier is a classic example. Safeguards could include rotating responsibility for that supplier.

All 10 questions in Chapter 3Threats to the fundamental principles and safeguards MCQs with answers

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