The correct answers are: The existence of significant overdue fees from an audit client can be a threat or appear to be a threat to the objectivity of the auditor; Where there are significant overdue fees, the situation should be reviewed to ascertain whether the overdue fees, taken together with the fees for the current assignment could be regarded as akin to a significant loan.

Significant overdue fees are akin to loans and loans constitute a threat to objectivity. The ACCA's Code of Ethics and Conduct does not quantify what amount of overdue fees is considered significant. There is no prohibition on commencing work simply because there are overdue fees, which is common in practice. Only if the overdue fees are significant should the auditor consider the threat to objectivity.