explain about intimidation threat

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Expert Solution

Intimidation threat refers to disrupting the objectivity of an accounting official by any higher authority where the accounting professional is made to be threatened in actual or in a perceived way in performing his works in an independent manner.

It may happen many a times, in an auditing firm that the manager is making pressure on the auditors to prepare a very appropriate and clean audit report for any concerned organization for his own profit or fotlr any other reson. Or it may happen that managers threaten the auditors that if they do not work according to them they will be made out of the organization , or give them some additional bendfit in exchange of which they ask auditors to prepare wrong audit reports.

Managers for their own profit committ such frauds and also force the auditors to do the same.

These all practices lead to hampering the objectivity of the auditor and is also unethical. This will make the auditors go wrong works which may lead them as well as the whole organization into the trouble. Such practices mislead the organization's, stakeholders as well as other persons concerned with the business.

Therefore intimidation threat is not at all an ethical practice . Thus this practice should be avoided by companies in any case.

ekkarill92 answered 1 year ago

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