Audix firm is the auditor of Golden Company Ltd and has been for 10 years. During this time, the audit partner responsible has always been John. The other partner in the firm, Robert, has been the review auditor for this assurance engagement. Robert has not been the lead audit partner as his wifes father is the CEO of Golden Company Ltd. Every year Golden Company Ltd celebrates the end of the audit by throwing an all-expenses paid weekend away for their staff that worked on the audit and for the audit firm. This has led to a good relationship between the auditors and the company that makes the audit less formal. The staffs all know each other well and the company believes it is money well spent. Recently John was approached by the board of Golden Company Ltd with an offer of employment as a director starting in two years time. The only condition was that the audit fees have to be reduced for the current and next years audit.

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From the above scenario, identify any threats to compliance with the IFAC Code of Ethics for Professional Accountants. Do you think that this Code of Ethics is useful in reducing unethical behaviour across the world?