Q23.Explain types of self interest threats.
- Self interest threats for finance and accounting professionals working as consultant or auditors are given below:
- A financial interest in a client or jointly holding the financial interest with a client.
- Undue dependence on total fees from a client.
- Having a close business relationship with a client
- Concern about the possibility of losing a client.
- Potential employment with a client.
- Self interest threat for finance and accounting professionals working as an employee are given below:
- Financial interests, loans and guarantees in the company in which the professionals is working.
- Incentive compensation arrangements.
- Inappropriate personal use of Corporate assets.
- Concern over employment security.