What are the threats to ethical behavior of auditors?

Answer 1

Self-interest threat, Self-review threat, Advocacy threat, Familiarity threat and Intimidation threat .

(a) Self-interest threat ─ the threat that a financial or other interest will inappropriately influence

the professional accountant's judgment or behaviour;

(b) 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

organisation, on which the accountant will rely when forming a judgment as part of providing

a current service;

(c) 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

compromised;

(d) 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

(e) 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.