(b) As a newly－qualified Chartered Certified Accountant, you have been asked to write an ‘

(b) As a newly-qualified Chartered Certified Accountant, you have been asked to write an ‘ethics column’ for a trainee

accountant magazine. In particular, you have been asked to draft guidance on the following questions addressed

to the magazine’s helpline:

(i) What gifts or hospitality are acceptable and when do they become an inducement? (5 marks)

Required:

For each of the three questions, explain the threats to objectivity that may arise and the safeguards that

should be available to manage them to an acceptable level.

NOTE: The mark allocation is shown against each of the three questions above.

(b) Draft guidance(i) Gifts and hospitalityGifts and hospitality may be offered as an inducement i.e. to unduly influence actions or decisions, encourage illegal ordishonest behaviour or to obtain confidential information. An offer of gifts and/or hospita