Question 1b
Marking Guide
Ethical matters
Generally 1 mark per comment:
– Conflict of interest threat to objectivity
– Evaluate significance of threat and potential safeguards
– Contact both parties to request consent to act
– Identify safeguards (1 mark each)
– If consent not obtained cannot act for both parties
– Explain why corporate finance service creates advocacy threat
– Explain why corporate finance service creates self-review threat
– Identify safeguards (1 mark each)
Maximum 7 marks