Accounting Multiple Choice Question – 5 November 2026

For each of the following threats, select whether they are identified by the IESBA Code only, the FRC’s Ethical Standard only, both the IESBA Code and the FRC Ethical Standard or neither the IESBA Code nor the FRC Ethical Standard.

• Management threat

Select ONE answer:

1. FRC’s Ethical Standard only
2. IESBA Code only
3. Neither
4. Both

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

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

The answer is 1

1. Correct – Both the IESBA Code of Ethics and the FRC Ethical Standard identify the following five threats: self-interest, self-review, advocacy, familiarity and intimidation. The FRC Ethical Standard also identifies the management threat; in addition, the IESBA Code of Ethics does not specify a ‘management threat’ as such, but notes that the assumption of ‘management responsibilities’ would create other threats.
2. Not correct
3. Not correct
4. Not correct

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