An accountant working in a company is told by the managing director that a bonus will depend on achieving a profit target and that the accounts must therefore be adjusted to show it. Which threats are present?
Answer and explanation
Correct answer: B. Self-interest and intimidation
- Step 1: The accountant stands to gain financially and is being pressed by a senior figure.
- Step 2: Self-interest and intimidation are both present.
Answer
Self-interest and intimidation.
Why not the others: Self-review and familiarity do not describe the scenario. Advocacy and management threats arise from promoting or managing for a client. Independence is a concept for assurance work, not a named threat in the question.
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