[Daria84]

NINJA Question –

I posted this on AUD exam group but didn’t get any response, I am posting the question as a new topic hoping some one can help me understand

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.

Answer is D. I looked in my books and cant seem to validate why D is the answer. What are structural threats?

Texas Candidate
A-71, 68, Retake Feb 2016
R- October 3rd 2015
F- January 2016
B

[Anonymous]

I could be wrong but I believe it is related the form of organization and structure of the cpa firm where not all members are CPA's but uses a misleading name to engage a potential client while actually being impaired or threatening impairment. I know that's for AICPA but there is a lot of similarity to IFAC and IESBA so my guess is treat them the same for exam purposes because its two hard to note the specific differences. If I had to guess at some other reason why it would be not applying the conceptual framework approach to independence because that is the structure and guidance the ethics are based off of.

[Author]

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