CAF-8 · Chapter 13 · Question 14 of 20
A chartered accountant is hired to actively promote an audit client's new issuance of shares to potential investors. Which threat does this scenario best illustrate?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Advocacy threat
Explanation
An advocacy threat occurs when a chartered accountant promotes a client's position to the point that their subsequent objectivity is compromised. Acting as a promoter or broker for a client's shares makes the auditor an advocate for the client.
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