ICAEW SE · Chapter 9 · Question 4 of 9
An accountant in practice is asked by a client to represent it publicly in a dispute with a tax authority, promoting the client's position. Which threat arises?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Advocacy threat
Explanation
An advocacy threat arises when an accountant promotes a client's or employer's position to the point that their objectivity is compromised. Acting on a client's behalf in a dispute can create this threat. For audit clients, such services may be restricted because of their effect on independence.
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