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Chapter 10

Ethical threats and dilemmas

4.1 Ethical threats

The IFAC Code sets out the approach that accountants should take to ethical issues:

Evaluate Identify and
Identify significance apply
threats
of threats safeguards

Safeguards are steps that the accountant can take to eliminate the threat, or reduce
it to an acceptable level.

If no safeguards are available, the accountant should

 Eliminate the interest or activities causing the threat

 If this is not possible, decline or discontinue the engagement.

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