ICAEW SE · Chapter 9 · Question 6 of 9
Under the conceptual framework in the ICAEW Code of Ethics, what are the three main steps an accountant should follow when dealing with threats to the fundamental principles?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Identify threats, evaluate threats, and address threats
Explanation
The conceptual framework requires accountants to identify threats to compliance with the fundamental principles, evaluate whether they are at an acceptable level, and address them by eliminating them or reducing them to an acceptable level. Where that is not possible, the accountant should decline or end the relevant service or activity.
More Threats and safeguards MCQs
- Q8How do the ethical threats typically faced by professional accountants in business tend to differ from those faced by accountants in…
- Q9An employee reports serious wrongdoing at her employer to an appropriate regulator after internal reporting has failed. Which statement…
- Q1A finance manager's bonus depends on the company reporting profit above a target, and she is responsible for estimating a large provision…
- Q2An accountancy firm designs a client's inventory valuation system and then audits the inventory figures produced by that system. Which…
- Q3An audit manager has worked on the same client for many years and has become close friends with the client's finance director. Which…