Chapter 9 Audit and Professional Services Research 2 Figure Identify Threats The
ID: 2342886 • Letter: C
Question
Chapter 9 Audit and Professional Services Research 2 Figure Identify Threats The Conceptual Framework Approach Threats Identify No Threats not Threats. Existing New Threats not at Level... Evaluate Safeguards STOP Threats at Proceed Source: Ellen Goria, "Revised AICPA Code of Ethics...What's the Fuss?" AICPA Journal of Accounsancy, Feb. 1 2014. o 2015, American Institute of CPAs. Used by permission. Now YOU Try 9.13 1. In your own words, explain the four steps in the conceptual framework approach. In what circumstances should a researcher apply one of the Code's three conceptual frame- works? 2. Each of the Code's three conceptual frameworks provides examples of potential threats to com- pliance with the Code, and safeguards that could reduce the risk of these threats. Let's consider now what is meant by the terms threats and safeguards Threats The Preface defines threats as follows:Explanation / Answer
1. The first step is to identify the threats related with the service. If there are none, then the service can be proceded with otherwise the threats are then evaluated to ensure their acceptable level. If threats are not at acceptable level, then safeguards are apllied. It may be new or an existing with some modifications. The objectives of safeguards are to reduce threats to minimal level or acceptable level. If the objective is fulfilled, continue providing the service otherwise discontinue the service.
2.A. When there is a conflict of interest.
B. When researcher has some kind of familiarity threat, it can apply this framework.