34) Which threat may occur as a result of the financial or other interests of a professional accountant or of an immediate or close family member?a) Familiarity threatsb) Self-review threatsc) Advocacy threatsd) Self-interest threats Auditors are important because they are able to provide assurance of an organization's financial statements from an objective and independentopinion. It benefits the company in several ways, such as maintaining consistency, finding errors in their processing, or detecting fraud. Whileperforming work , the auditors may face situations when they will not be able to fulfill ethical requirements.Answer the following three questions based on the above case

Self -Interest Threats While performing audit functions, the auditor may face various situations in…

Which threat may occur as a result of the financial or other interests of a professional accountant or of an immediate or close family member? a) Familiarity threats b) Self-review threats c) Advocacy threats d) Self-interest threats

Which threat may occur as a result of the financial or other interests of a professional accountant or of an immediate or close family member? a) Familiarity threats b) Self-review threats c) Advocacy threats d) Self-interest threats

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Is business ethics an oxymoron?

A: Ethics: Business ethics refers to a set of moral codes and guidelines that governs corporate…

Q: The management fraud is committed by a top level management employee? Give an example of those top…

A: frauds committed by management ( top-level ) - - management frauds are committed by top-level…

Q: a. An organization may accept the risk if it is prepared to absorb or mitigate the impact of the…

A: The risk response's purpose is to develop an organization-wide, uniform response to the risk frame.…

Q: Which of the following circumstances may create self-interest threats for members: a) holding a…

A: For professional accountants, some situation may cause self interest threats. It means they are…

Q: Role of Central Banks and Moral Hazards The job of central banks in making moral hazard. How do…

A: Introduction:The job of central banks in making moral hazard-Central banks have injected moral…

Q: A process that create a financial position that offsets the risk of an ongoing business process is…

A: Transfer of risk: Transfer of risk is one the strategy for risk management. This involves transfer…

Q: When an employee is in a position to penetrate and hide fraud, incompatible roles exist. False or…

A: Accounting fraud: Accounting fraud refers to the deliberate manipulation and illegal alteration of…

Q: What is Competitive Advantage b. What is Competitive Disadvantage c. What is Risk Management and…

A: "Since you have posted multiple questions, we will solve first question for you. If you want any…

Q: According to the AICPA Code of Professional Conduct, omitting material information on a financial…

A: According to the AICPA Code of Professional Conduct, omitting material information on a financial…

Q: Consider what you learned about nonverbal and verbal clues to deception. Can you think of a personal…

A: Non Verbal and Verbal Clues of deception Nonverbal cues are cues to deception that are presented by…

Q: How do I evaluate whether whistleblowing is a moral practice or not?

A: Whistle blowing is the one which calls the attention to the wrong happening within the business and…

Q: What motivates individuals to engage in occupational fraud?

A: Occupational frauds occur when an employee, management, officer, or owner of a company commits fraud…

Q: What causes people to commit occupational fraud?

A: Answer:Causes of occupational fraud by people are listed below:Financial pressures:Financial…

Q: how does being unethical in the financial industry affect communication with clients?

A: In the financial services industry an agent or the concerned company (which is the financial…

Q: Critically explain the key features of the Sarbanes-Oxley Act 2002 which aims at protectinginvestors…

A: The Sarbanes-Oxley Act of 2002 (SOX) was enacted in the United States in response to a series of…

Q: What steps need to be taken before interviewing a person that is not suspected of committing fraud…

A: “Since you have posted a many question, we will solve first question for you. To get the remaining…

Q: What are two internal stakeholders and external stakeholders that get affected by embezzlement?

A: Embezzlement: It refers to the misappropriation of assets belonging to the organization by the…

Q: The law is that which must be obeyed and followed by members of a society subject to sanctions or…

A: Laws governs and administered the system of a country. It defines what is right and wrong, what is…

Q: How would you handle an ethical violation committed by one of your employees?

A: Ethical Violation: In a nutshell, an ethical breach is anything that is - stated, written, or acted…

Q: QUESTION 1 Which of the following is not a behaviour bias? a. Prospect theory b. Conservatism C.…

A: Analysis of the given options: a) Prospect theory ANALYSIS- Prospect theory finds application in…

Q: Which of the following would a fraudster perceive as a pressure?A. lack of management oversightB.…

A: Internal control techniques are those procedures or techniques which will ensure that objectives of…

Q: The chartering process is especially designed to deal with the reduce the problem. O adverse…

A: Financial health refers to the overall well-being and stability of an individual, organization, or…

Q: Fraud is an ________ act by any person to conceal the truth, deceive and obtain illegal advantage.…

A: Following is the answer to the given question

Q: What is the connection between criminology and the discovery or prevention of fraud? It's not the…

A: Fraud It is the deliberate act of doing anything to get illegal items and deny the victim's rights.

Q: Prudential regulation is generally seen to deal with: a. Systematic risks in the financial sector.…

A: Prudential risks are those that can reduce the adequacy of a firm's financial resources, and as a…

Q: Why do auditors need to differentiate between employee and management fraud? Is it the…

A: That the Company's financial statements are free of any substantial misstatements following…

Q: A company have a corporate code of ethics that prohibit employees from taking gifts from customer…

A: Control procedures: These are specific actions that are taken to mitigate identified risks and…

Q: Common examples of financial abuse include:?

A: Financial abuse typically involves a family member or another person whom the older adult trusts…

Q: Explain the differences between Criminal Fraud versus Civil Fraud and provide an example of each…

A: The objective of this question is to understand the differences between Criminal Fraud and Civil…

Q: The general management of the client have a history of corporate tax avoidance and violating listing…

A: In case of fraud there are two type that include the miss appropriation of assets and fraud…

Q: “fraud triangle

A: Fraud triangle theory explains the reasons for committing fraud.

Q: Outline the steps which can be taken to investigate occupational fraud.

A: Occupational fraud often refers to fraud committed by employees of an organization. This type of…

Q: PLEASE ANSWER NO. 8 7. Examples of various threats to independence Self-interest Self-review…

A: When an auditor conducts auditing of a certain company or organization he should be having a certain…

Q: How can a business owner identify risk exposure?

A: Introduction: Risk can be characterised in terms of the uncertainty of future consequences resulting…

Q: nternal control does not consist of policies and procedures that Select one: a. Ensure that business…

A: Internal controls are the procedure that are implemented by an entity to ensure that the financial…

Q: As a CPA do you advise your clients to stay away from digital investments or do you encourage them…

A: As a CPA when giving investment advices to my client I first of all start by making them aware of…

Q: xplain the role of the Risk Manager in fraud detection Explain the role of the Risk Manager in fraud…

A: In the world of finance risk managers play a very important role when it comes to detection of…

Question

34) Which threat may occur as a result of the financial or other interests of a professional accountant or of an immediate or close family member?

a) Familiarity threats

b) Self-review threats

c) Advocacy threats

d) Self-interest threats

Auditors are important because they are able to provide assurance of an organization's financial statements from an objective and independent
opinion. It benefits the company in several ways, such as maintaining consistency, finding errors in their processing, or detecting fraud. While
performing work , the auditors may face situations when they will not be able to fulfill ethical requirements.
Answer the following three questions based on the above case

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

SELF-INTEREST THREATS

VIEW

Analysis of Options

VIEW

Conclusion

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Code of Ethical Conduct and Its Interpretations

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A machine costing $29,375 with a 5-year life and $1,800 residual value was purchased January 2. Compute depreciation for each of the five years, using the double-declining-balance method. Year Depreciation Year 1 $fill in the blank 1 Year 2 $fill in the blank 2 Year 3 $fill in the blank 3 Year 4 $fill in the blank 4 Year 5 $fill in the blank 5
Which of the following is NOT a client protection principle? a. Methods that prevent client of over-indebtedness b. Privacy of client data c. Adequate safeguards to prevent aggressive or abusive treatment of clients d. The number of loans assigned to a loan officer
What role does trust play in allowing fraudulent schemes to transpire
ways on how to avoid conflict of interest in an organization.
What is the ethical value of applying the Fraud Triangle to assess the risk of material misstatements in the financial statements?
What are three categories of employee fraud? Which is mostcommon? Which is associated with the largest losses?
Your para-planner sends out unauthorized information to your client. Your client acts on the information. Are you responsible? A. You are responsible only if the client acts on the information. B. You are not responsible because the client never consulted you C. You are not responsible for the para-planner's actions. D. You are responsible
What can be done by a business to mitigate: Execution risk Technology risk Reputation risk Process risk Systems risk Privacy risk
Do you think there are any circumstances when you should go outside the company to report financial wrongdoing? If so, to what person/organization would you go? Why? If not, why would you not take the information outside the company?
What are some effective methods that could have helped in dealing with an interview subject from whom you are seeking an admission in reference to fraud?
Individuals who believe they relied on misstated financial statements to make a decision andhave suffered losses as a result will issue an action known as aa. Breach of contract.b. Tort.c. Securities litigation.d. Constructive fraud.
Which of the following is NOT a duty owed by an agent to his/her principal? 1) Duty to Obey Instructions. 2) Duty of Care. 3) Duty to Retreat. 4) Duty to Provide Information.