CIMA BA4 Syllabus A. BUSINESS ETHICS AND ETHICAL CONFLICT - Threats - Notes ^{3 / 6}

Categories of Threat

Accountants need to be fully aware of situations that may damage their independence.

1. Self-interest 

   Here the accountant may have a financial (or other) interest in a matter.

   Therefore the accountant may not act with objectivity and independence.

2. Self-review 

   Here the accountant reviews a judgement she has taken herself. 

   This is a threat to objectivity and independence.

3. Advocacy

   Here the accountant is expected to defend or justify the position of the client, and act as an ‘advocate’.

   This is a threat to objectivity and independence.

4. Intimidation

   Here the accountant can't act independently as she is scared due to intimidatory threats such as the threat to take away the work unless they do as the client wishes.

5. Familiarity

   Here the accountant and client have a too close relationship, for example due to a long association over many years in carrying out the preparation of statements.