Day: March 15, 2025

Betty is a professional accountant in public practice, working for Bash and Co.

She has just got engaged to the managing director, Keith, of Bobbies Ltd, where she used to work until about a year ago.

Betty started working on the company’s audit six months ago.

The following statements about this situation have been made:

Statement 1 An objective attitude towards a client is subject to self-interest or familiarity threats as a consequence of family or other close personal or business relationships.

Statement 2 Where a close personal relationship exists between a professional accountant and someone in a client organisation, that person can continue to act for the company providing sufficient safeguards are in place.

Statement 3 A professional accountant should not personally take part in a company audit if they have worked for that company within two years of the period of the audit.

Identify whether the statements are true or false?

Select ONE answer:

1. Statement 1. True and Statement 2. False and Statement 3. False
2. Statement 1. False and Statement 2. True and Statement 3. False
3. Statement 1. True and Statement 2. False and Statement 3. True
4. Statement 1. False and Statement 2. True and Statement 3. True

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct == > True False True
4. Not correct

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