[win2bet]

NINJA Question –

Under the IESBA Code of Ethics for Professional Accountants, threats to the fundamental principles are to be identified so that safeguards can be applied. Potential threats identified include all of the following except:

A.

self-interest threats.

B.

self-review threats.

C.

structural threats.

D.

All of the answer choices are threats identified in the Code of Ethics.

NINJA says the answer is D, but i don’t see structural threats anywhere, so shouldn’t it be C?

The 5 threats are: self interest, self review, advocacy, familiarity, and intimidation threats.

REG 68,87
BEC 85
FAR 75
AUD 64,64, 86!

[Biff-1955-Tannen]

I've noticed this as well, so I'll be curious as to what people say about this. I don't know if structural threat is a specific issue for governmental audits or what but I know there is another question where structural threat is an answer to a question that has to do with auditing a governmental entity when the audit function is in some sub group of that entity.

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[win2bet]

@biff yea lets wait to see if anyone says it applies to one of the other 3

REG 68,87
BEC 85
FAR 75
AUD 64,64, 86!

[Anonymous]

I know this is kind of second hand information, but your post was interesting and I tried digging a little bit. According to this site which references the 2011 yellow book:
https://www.esoppartners.com/blog/bid/160535/7-Threats-to-ESOP-Appraiser-Independence

Threats to independence include:
Self interest
Self review
Bias threat
Familiarity threat
Undue influence threat
Management participation threat
Structural threat

Where structural threat is “the threat that an audit organization’s placement within a government entity, in combination with the structure of the government entity being audited, will impact the audit organization’s ability to perform work and report results objectively”. So this would only relate to a government entity which is why it pops up in Biff's other question as well. I was going to bring up the yellow book itself but it was too much work.

[win2bet]

@AK thanks a lot for finding that! NINJA wasn't wrong. would love to get this question now =]

REG 68,87
BEC 85
FAR 75
AUD 64,64, 86!

[Author]

Replies