ICAEW ARF · Chapter 10 · Question 6 of 12
An audit firm promotes the shares of an audit client to potential investors. Which threat does this create?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Advocacy
Explanation
An advocacy threat arises when the firm promotes a client's position to the point that its objectivity may be compromised. Promoting the client's shares aligns the firm with the client's interests, which is incompatible with the independent role of the auditor.
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