Question 1

LegalAdvise is an accounting and consulting firm. One of their partners is acting as an expert witness in a court case on behalf of an audit client, aggressively arguing that the client's tax avoidance scheme is entirely legal and ethical.

Which ethical threat does this behavior primarily create regarding the firm's audit independence?

Accepted Answer

Identify the action: the partner is 'aggressively arguing on behalf of' the client. This is the definition of advocacy.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Confusing Advocacy with Self-interest. While the firm wants to win the case, the specific threat to independence caused by defending the client is Advocacy.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA BT — Business & Technology Practice Exam 5

More questions from this exam