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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Code of Ethics for Professional Accountants

Which of the following lists correctly names the categories of threat to compliance with the fundamental principles identified in the IESBA Code's conceptual framework?

The five threat categories in the IESBA Code are self-interest, self-review, advocacy, familiarity and intimidation. Independence is something the auditor must achieve, not a threat category, and financial or management involvement is analysed within these five categories.

  1. ASelf-interest, self-review, advocacy, familiarity and intimidationCorrect
  2. BSelf-interest, self-review, advocacy, familiarity and independence
  3. CFinancial, self-review, advocacy, familiarity and intimidation
  4. DSelf-interest, management, advocacy, familiarity and intimidation

Explanation

The Code identifies five categories of threat: self-interest, self-review, advocacy, familiarity and intimidation. Independence is a requirement for audit clients, not a threat category. 'Financial' and 'management' are not separate categories; a management role would create a self-review or self-interest threat.

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