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Unformatted text preview: fessional 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. 19 100.14 Safeguards created by the profession, legislation or regulation include:
• Educational, training and experience requirements for entry into the profession.
Continuing professional development requirements.
Corporate governance regulations.
Professional or regulatory monitoring and disciplinary procedures.
External review by a legally empowered third party of the reports, returns, communications
or information produced by a professional accountant. 100.15 Parts B and C of this Code discuss safeguards in the work environment for professional
accountants in public practice and professional accountants in business, respectively.
100.16 Certain safeguards may increase the likelihood of identifying or deterring unethical behavior.
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This document was uploaded on 04/03/2014.
- Spring '14