ACCA Applied Knowledge · Business and Technology · Fundamental principles of ethical behaviour
A professional accountant is asked by an employer to describe in glowing terms a product's features to investors, going beyond what is supportable by the facts. Which threat is mainly created?
The main threat is advocacy. The accountant is being asked to promote the employer's position beyond what the facts support, which risks compromising objectivity and integrity, rather than reviewing their own work, being too close to someone, or acting for personal gain.
- AAdvocacy threatCorrect
- BSelf-review threat
- CFamiliarity threat
- DSelf-interest threat
Explanation
An advocacy threat occurs when a professional promotes a position or opinion to the point that objectivity may be compromised. Presenting unsupported claims on the employer's behalf fits this. Self-review concerns evaluating one's own earlier work.
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