CAF-8 · Chapter 13 · Question 3 of 20
Which of the following situations is an example of an 'Advocacy Threat'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The auditor serves as an expert witness for the audit client in a legal dispute against a third party.
Explanation
Advocacy threats arise when an auditor promotes a client's position to the point that their objectivity as an independent auditor is compromised.
More Professional Ethics and Code of Conduct MCQs
- Q5When is an auditor permitted to disclose confidential information obtained during an audit without the client's permission?
- Q6A small audit firm is asked to both prepare the financial statements and audit them for the same public interest entity (PIE). Which…
- Q7Which ethical principle is violated if an auditor makes exaggerated claims about the services they can offer or disparages the work of…
- Q8A client offers the audit team an all-expenses-paid luxury holiday to Dubai as a 'thank you' for their hard work. According to the code of…
- Q9Which principle requires an auditor to not allow bias, conflict of interest, or undue influence of others to override professional or…
