6 Certain practices have developed that threaten to damage the integrity and objectivity o

6 Certain practices have developed that threaten to damage the integrity and objectivity of professional accountants and

the reputation of the accounting profession.

Required:

Explain the following practices and associated ethical risks and discuss whether current ethical guidance is

sufficient:

(a) ‘lowballing’; (5 marks)

6 CERTAIN PRACTICESTutorial note: The answer which follows is indicative of the range of points which might be made. Other relevant material willbe given suitable credit.(a) ‘Lowballing’Explanation of term‘Lowballing’ is the ‘loss-leading’ practice in whi