ICAEW SE · Chapter 9 · Question 8 of 9
How do the ethical threats typically faced by professional accountants in business tend to differ from those faced by accountants in public practice?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Accountants in business are more likely to face pressure from their own employer, for example from managers whose interests depend on reported results, and may find it harder to walk away because their livelihood depends on one organisation
Explanation
Accountants in business often face pressure from superiors and colleagues to present results favourably, and their employment and income depend on a single employer, which can make intimidation and self-interest threats harder to resist. Accountants in practice face threats arising from client relationships and fees. All professional accountants must comply with the fundamental principles.
More Threats and safeguards MCQs
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