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Unformatted text preview: support of those
objectives. Nevertheless, where a relationship or circumstance creates a threat to compliance with the
fundamental principles, a professional accountant in business shall apply the conceptual framework
approach described in Section 100 to determine a response to the threat.
310.2 As a consequence of responsibilities to an employing organization, a professional accountant in
business may be under pressure to act or behave in ways that could create threats to compliance
with the fundamental principles. Such pressure may be explicit or implicit; it may come from a
supervisor, manager, director or another individual within the employing organization. A
professional accountant in business may face pressure to:
• Act contrary to law or regulation. • Act contrary to technical or professional standards. • Facilitate unethical or illegal earnings management strategies. • Lie to others, or otherwise intentionally mislead (including misleading by remaining silent)
others, in particular: o
• The auditors of the employing organization; or
Regulators. Issue, or otherwise be associated with, a financial or non-financial report that materially
misrepresents the facts, including statements in connection with, for example:
o Tax compliance; o Legal compliance; or o
310.3 The financial statements; Reports required by securities regulators. The significance of any threats arising from such pressures, such as intimidation threats, shall
be evaluated and safeguards applied when necessary to eliminate them or reduce them to an
acceptable level. Examples of such safeguards include:
• Obtaining advice, where appropriate, from within the employing organization, an
independent professional advisor or a relevant professional body. • Using a formal dispute resolution process within the employing organization. • Seeking legal advice. 238 SECTION 320
Preparation and Reporting of Information
320.1 Professional accountants in business are often involved in the preparation and reporting o...
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This document was uploaded on 04/03/2014.
- Spring '14