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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?

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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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