ExpertEasy1 markMultiple Choice
CPA · Question 71 · Area I: Ethics & General Principles
Which of the following is an example of an 'Advocacy Threat' to independence?
Which of the following is an example of an 'Advocacy Threat' to independence?
Answer options:
A.
The auditor prepares the tax return for the client.
B.
The auditor endorses the client's services or products.
C.
The auditor's spouse is a receptionist at the client.
D.
The auditor has a dispute with the client regarding fees.
How to approach this question
Advocacy = Cheerleading for the client.
Full Answer
B.The auditor endorses the client's services or products.✓ Correct
The auditor endorses the client's services or products.
The advocacy threat is the threat that a member will promote a client's interests or position to the point that his or her objectivity or independence is compromised.
Common mistakes
Confusing Advocacy with Self-Interest.
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