Under the conceptual framework in the ICAEW Code of Ethics, which sequence of steps should an accountant follow?
Answer and explanation
Correct answer: B. Identify threats, evaluate them and address them with safeguards or by declining
- Step 1: The framework is a three-step process.
- Step 2: It starts with identification and evaluation, then action.
Answer
Identify threats, evaluate them and address them with safeguards or by declining.
Why not the others: Ignoring threats is not allowed. Threats cannot be addressed before they are identified. The professional accountant is responsible for identifying and evaluating threats.
Practise more Threats and safeguards.
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