AUE2601
EXAM PACK
, Question 1
Correct
Mark 2.00 out of 2.00
Dashboard Calendar
Match the correct description of the following threats to compliance with the fundamental principles:
Dashboard / My courses / AUE2601-25-S2 / Welcome Message / Assessment 1
Professional accountants quote a low fee to obtain a new engagement, but the fee is so low that it might
Self-interest threat
be difficult to perform the professional service in accordance with applicable technical and professional
standards of practice.
A professional accountant has prepared the original data used to generate the records that are the subject Self-review threat
matter of the assurance engagement.
Advocacy threat
A professional accountant lobbies in favour of legislation on behalf of a client.
Familiarity threat
A professional accountant has a close family member who is the director of the client.
A professional accountant accepted a significant gift from a client and threatened that acceptance of the Intimidation threat
gift will be made public.
Your answer is correct.
References
· Code of Professional Conduct, sections 300.6 A1, included in SAICA student handbook, Volume 2B
· Auditing notes for South African students (2021): 2/22–2/37
Threat Description
Self-interest threat Professional accountants quote a low fee to obtain a new engagement,
but the fee is so low that it might be difficult to perform the professional
service in accordance with applicable technical and professional standards
of practice.
Self-review threat A professional accountant has prepared the original data used to generate
the records that are the subject matter of the assurance engagement.
Advocacy threat A professional accountant lobbies in favour of legislation on behalf of a
client.
Familiarity threat A professional accountant has a close family member who is the director
of the client.
Intimidation threat A professional accountant accepted a significant gift from a client and
threatened that acceptance of the gift will be made public.
The correct answer is:
Professional accountants quote a low fee to obtain a new engagement, but the fee is so low that it might be difficult to perform the
professional service in accordance with applicable technical and professional standards of practice. → Self-interest threat,
A professional accountant has prepared the original data used to generate the records that are the subject matter of the assurance
engagement. → Self-review threat,
A professional accountant lobbies in favour of legislation on behalf of a client. → Advocacy threat,
A professional accountant has a close family member who is the director of the client. → Familiarity threat,
A professional accountant accepted a significant gift from a client and threatened that acceptance of the gift will be made public. →
Intimidation threat
EXAM PACK
, Question 1
Correct
Mark 2.00 out of 2.00
Dashboard Calendar
Match the correct description of the following threats to compliance with the fundamental principles:
Dashboard / My courses / AUE2601-25-S2 / Welcome Message / Assessment 1
Professional accountants quote a low fee to obtain a new engagement, but the fee is so low that it might
Self-interest threat
be difficult to perform the professional service in accordance with applicable technical and professional
standards of practice.
A professional accountant has prepared the original data used to generate the records that are the subject Self-review threat
matter of the assurance engagement.
Advocacy threat
A professional accountant lobbies in favour of legislation on behalf of a client.
Familiarity threat
A professional accountant has a close family member who is the director of the client.
A professional accountant accepted a significant gift from a client and threatened that acceptance of the Intimidation threat
gift will be made public.
Your answer is correct.
References
· Code of Professional Conduct, sections 300.6 A1, included in SAICA student handbook, Volume 2B
· Auditing notes for South African students (2021): 2/22–2/37
Threat Description
Self-interest threat Professional accountants quote a low fee to obtain a new engagement,
but the fee is so low that it might be difficult to perform the professional
service in accordance with applicable technical and professional standards
of practice.
Self-review threat A professional accountant has prepared the original data used to generate
the records that are the subject matter of the assurance engagement.
Advocacy threat A professional accountant lobbies in favour of legislation on behalf of a
client.
Familiarity threat A professional accountant has a close family member who is the director
of the client.
Intimidation threat A professional accountant accepted a significant gift from a client and
threatened that acceptance of the gift will be made public.
The correct answer is:
Professional accountants quote a low fee to obtain a new engagement, but the fee is so low that it might be difficult to perform the
professional service in accordance with applicable technical and professional standards of practice. → Self-interest threat,
A professional accountant has prepared the original data used to generate the records that are the subject matter of the assurance
engagement. → Self-review threat,
A professional accountant lobbies in favour of legislation on behalf of a client. → Advocacy threat,
A professional accountant has a close family member who is the director of the client. → Familiarity threat,
A professional accountant accepted a significant gift from a client and threatened that acceptance of the gift will be made public. →
Intimidation threat
