Question

What do you understand by threats to fundamental principles of ethical behaviour?

Answer 1

To bound auditors around the world to achieve objectives of engagement effectively and also providing users of financial statements with reasonable assurance and making them responsible for other aspects of the profession auditors have to abide by the requirements of code of ethics. Principles laid out in code of ethics are also know as fundamental ethical principles and auditor is required to assure all such principles are fulfilled. Fundamental principles include honesty or integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

Answer 2

Threats may be created by a 'wide range of circumstances' and relationships. A 'wide range of interactions' and situations can pose risks. If a relationship or situation poses a danger, a threat of this nature may undermine or hinder the observance of the fundamental principles by a qualified accountant. A situation or relationship can create several threats, and more than one fundamental principles can be affected by a threat.  

EXPLANATION:

'Threats' fall into 'one or more of the following categories':

• 'Self-Interest Threat': The threat that a 'financial or other interest' will 'improperly influence' the 'professional accountant’s behaviour' or judgment
• 'Self-Review Threat': The threat that the professional accountant does not properly assess the findings of previous assessments or service rendered by the professional accountant or by another person within the employing company of the professional accountant, which the accountant depends upon when he makes a decision as part of the provision of a current service.
• 'Advocacy Threat': The threat that a professional accountant promotes a role of a client or an employer to the point of undermining the objective of the professional accountant.
• 'Familiarity Threat': The threat that owing to a close or long relationship with an employer or a client, the professional accountant will be too considerate to their interests or too tolerant of their work,
• 'Intimidation Threat': The danger of a professional accountant being deterred from acting objectively due to perceived or actual pressure, including exercising undue influence over the professional accountant  

To know more

What do you understand by threats to fundamental principles of ethical behaviour acca?

https://brainly.in/question/9957840

Explain the various elements of business ethics?​

https://brainly.in/question/8719308