ACCA Applied Knowledge · Business and Technology · Ethical conflicts and dilemmas
A financial controller prepared a provision estimate last year. This year she is asked to review and approve the same estimate as part of the internal audit of the accounts. Which threat is most clearly present?
The threat is self-review. The controller is being asked to evaluate a judgment she made herself, so she may not assess it objectively or may fail to spot her own errors, which threatens objectivity and professional competence.
- ASelf-interest threat
- BSelf-review threatCorrect
- CIntimidation threat
- DAdvocacy threat
Explanation
A self-review threat occurs when a professional must re-evaluate a judgment or service they previously provided themselves. The controller would be assessing her own estimate. Self-interest would require a financial or personal stake, which is not described.
Did you get it right without looking?
One question tells you little. A timed set on Ethical conflicts and dilemmas shows your real accuracy, how long you take and where you lose marks.
More Ethical conflicts and dilemmas questions
- An accountant has raised an ethical concern through every level of internal management and the board, but the unethical practice continues a…
- Tomas, a management accountant, discovers that his finance director has been deliberately overstating inventory to meet bank covenant target…
- Under a conceptual-framework approach to ethical conflicts, an accountant has identified a threat to compliance with the fundamental princip…
- Which of the following is a recognised test often used as a quick check when deciding whether a proposed action is ethical?
- Which of the following is an example of a safeguard created by the accountancy profession, legislation or regulation, as opposed to one crea…
- When an accountant in business identifies a threat to compliance with the fundamental principles, what is the correct next step if the threa…