CIMA
Student Ethics Support Tool - Threats and safeguards

Threats

The Code points out that we may encounter ‘specific threats to compliance with the fundamental principles’. Further, the Code helps by categorising threats as self-interest threats, self-review threats, advocacy threats, familiarity threats, and intimidation threats.

Examples

 

self-interest threats
thinking about your bonus
self-review threats
not using objectivity and independence
advocacy threats
not using objectivity and just promoting an employer’s position
familiarity threats
a close relationship with an employer, supplier or client
intimidation threats
an employer or client pressuring and using undue influence

 

 

Safeguards

The Code also offers some defence mechanisms in the form of safeguards, including:

educational, training and experience requirements for entry into the profession

continuing professional development requirements

corporate governance regulations

professional standards

professional or regulatory monitoring and disciplinary procedures

external review by a legally empowered third party of the reports, returns, communications or information produced by a professional accountant

This list of safeguards is not exhaustive.