CAF-8 · Chapter 13 · Question 13 of 20
The CEO of an audit client threatens to replace the audit firm and withhold all outstanding fees if the engagement partner issues a qualified audit opinion. What type of ethical threat is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Intimidation threat
Explanation
An intimidation threat occurs when a chartered accountant is deterred from acting objectively because of actual or perceived pressures, such as a direct threat of dismissal or litigation by the client's management.
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