Michael has been approached by the CEO of an audit client and offered two tickets to the FIFA tournament at the Olympic Games. The CEO knows that Michael has always wanted to attend the Olympic Games and thought this was a nice way to thank him for twenty-years of excellent professional services. From an ethical perspective in deciding whether to accept the gift Michael should consider whether:
A) He has the time and money to travel to the games
B) Threats created by the gifts are at an acceptable level
C) The audit has been completed for the current year
D) Nonaudit services are also provided for the client

Question

Quizplus · Accepted Answer

The main ethical concern here is whether accepting the gift would create threats to Michael's professional independence or objectivity in relation to the audit client. The threat of familiarity or undue influence could arise if Michael accepts the gift, especially if he has a close relationship with the CEO. Therefore, Michael should carefully evaluate the level of threat created by the gift and whether it is at an acceptable level. The other choices are not directly relevant to this ethical issue.

Michael Has Been Approached by the CEO of an Audit