Which TWO of the following scenarios represent a 'Self-review threat' according to the IFAC Code of Ethics? (Select TWO)

Answer options:

An auditor discovering a material error in a financial system they personally designed and implemented last year.

An auditor being offered a highly lucrative job as the Financial Controller of the client.

A tax consultant preparing the corporate tax return and then acting as the external auditor for the same figures.

An accountant being threatened with dismissal if they do not sign off on fraudulent accounts.

How to approach this question

Look for situations where the professional is evaluating a judgment or work product that they themselves created previously.

Full Answer

A self-review threat occurs when a professional accountant is required to evaluate the results of a previous judgment made, or service performed, by themselves or another individual within their firm. Options A and C both involve the accountant auditing or reviewing their own prior work.

Common mistakes

Confusing self-review with self-interest. Self-review specifically involves looking back at previous work you did.

Question 29 All questions Question 31

Practice the full ACCA BT — Business & Technology Practice Exam 1

52 questions · hints · full answers · grading

More questions from this exam

Q01A highly vocal but underfunded local community group is actively opposing the construction of a n...Medium Q02CloudNet Inc., a global data storage provider, is forced to restructure its server network due to...Medium Q03BioCure Ltd manufactures a highly specialized, patented drug for a rare genetic disorder. There a...Easy Q04In the context of Porter's Five Forces, which of the following scenarios best illustrates a high ...Medium Q05AgriGrow is an organization owned entirely by the farmers who supply it with raw wheat. The organ...Easy

View all 52 questions →