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CAF-6 · Chapter 13 · Question 6 of 15

A financial accountant promotes the shares of their employing company to potential investors in a highly exaggerated manner to help the company secure a loan. What specific threat does this action create?

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: B) Advocacy threat

Explanation

An advocacy threat occurs when a chartered accountant promotes a client's or employing organization's position to the point that their objectivity is compromised.

All 15 questions in Chapter 13Ethical issues in financial reporting MCQs with answers

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