Auditing and Accounting Ethics Essay Example | Topics and Well Written Essays - 3000 words

Auditing and Accounting Ethics - Essay Example lient. Loebbecke, A., (2000) mentioned that a self-review threat occurs when any product or judgment of a previous assurance engagement or non-assurance engagement needs to be re-evaluated in reaching conclusions on the assurance engagement. When a member or member of the assurance team was previously a director or officer of the assurance client or was an employee would be in a position to exert direct and significant influence over the subject matter of an assurance engagement. Examples of circumstances that may create this threat include, but are not limited to: a member or member of the assurance team being, or having recently been, a member or member of the assurance team being, or having recently been, performing services for an assurance client that directly affect the subject matter of the assurance engagement. Mintz S. M. ... Examples of circumstances that may create this threat include, but are not limited to: dealing in, or being a promoter of, shares or other securities of an assurance client; and acting as an advocate on behalf of an assurance client in litigation or in resolving disputes with third parties. Hayes, R., Dassen R., et al (2005) also noted that a familiarity threat occurs when, by virtue of a close relationship with an assurance client, its directors, officers or employees, a member, firm or member of the assurance team becomes too sympathetic to the client's interests. Examples of circumstances that may create this threat include, but are not limited to: a member or member of the assurance team having an immediate family member or close relative who is a director member of the assurance team having an immediate family member or close relative who, a former partner of the firm being a director or officer of the assurance client or an employee in a position to exert direct and significant influence over the subject matter of the assurance engagement, and acceptance of gifts or hospitality, unless the value is clearly insignificant, from the assurance client, its directors, officers or employees. An intimidation threat occurs when a member or member of the assurance team may be deterred from acting objectively and exercising professional skepticisms by threats, actual or perceived, from the directors, officers or employees of an assurance client. Examples of circumstances that may create this threat include but are not limited to: threat of replacement due to a disagreement with the application of an accounting principle; and pressure to reduce inappropriately the extent of work performed in order to