ExpertEasy2 marksMultiple Choice
ACCA · Question 29 · Business & Technology
Section A
The CEO of a client company tells the lead audit partner, "If you don't issue an unqualified (clean) audit opinion this year, we will take our business to another firm and sue you for breach of contract."
Which ethical threat does this represent?
Section A
The CEO of a client company tells the lead audit partner, "If you don't issue an unqualified (clean) audit opinion this year, we will take our business to another firm and sue you for breach of contract."
Which ethical threat does this represent?
Answer options:
A.
Self-interest threat
B.
Advocacy threat
C.
Intimidation threat
D.
Familiarity threat
How to approach this question
Look at the CEO's behavior: threatening to fire and sue. This is aggressive and designed to intimidate.
Full Answer
C.Intimidation threat✓ Correct
An intimidation threat occurs when a professional accountant is deterred from acting objectively because of actual or perceived pressures, including attempts to exercise undue influence over the accountant (e.g., threat of dismissal or litigation).
Common mistakes
Choosing Self-interest threat because the firm might lose money. The active threat makes it Intimidation.
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