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Unformatted text preview: te more than one threat, and a threat may affect compliance with more than one fundamental
principle. Threats fall into one or more of the following categories:
(b) (c) (d) (e) Self-interest threat – the threat that a financial or other interest will inappropriately
influence the professional accountant’s judgment or behavior;
Self-review threat – the threat that a professional accountant will not appropriately evaluate
the results of a previous judgment made or service performed by the professional
accountant, or by another individual within the professional accountant’s firm or employing
organization, on which the accountant will rely when forming a judgment as part of
providing a current service;
Advocacy threat – the threat that a professional accountant will promote a client’s or
employer’s position to the point that the professional accountant’s objectivity is
Familiarity threat ─ the threat that due to a long or close relationship with a client or
employer, a professional accountant will be too sympathetic to their interests or too
accepting of their work; and
Intimidation threat – the threat that a professional accountant will be deterred from acting
objectively because of actual or perceived pressures, including attempts to exercise undue
influence over the professional accountant. Parts B and C of this Code explain how these categories of threats may be created for
professional accountants in public practice and professional accountants in business, respectively.
Professional accountants in public practice may also find Part C relevant to their particular
100.13 Safeguards are actions or other measures that may eliminate threats or reduce them to an
acceptable level. They fall into two broad categories:
(a) Safeguards created by the profession, legislation or regulation; and
(b) Safeguards in the work environment.
100.14 Safeguards created by the profession, legislation or regulation include:
• Educational, training and experience requirements for entry into the profession.
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This document was uploaded on 04/03/2014.
- Spring '14