Advocacy threat – the threat that a professional accountant will promote a client’s or employer’s position to the point that the professional accountant’s objectivity is compromised.
pressures, including attempts to exercise undue influence over the professional accountant.
What does advocacy mean in accounting?
Advocacy threat Definition: Advocacy threat occur when members promote a position or opinion on behalf of a client to the point that subsequent objectivity may be compromised. Example: Acting as an advocate for an assurance client in litigation or dispute with third parties.
What is advocacy threat accounting?
Occurs when the audit firm, or a member of the audit team, promotes, or may be perceived to promote, an audit client’s position or opinion. For example: acting as an advocate on behalf of an audit client in litigation or in resolving disputes with third parties.
What are the five codes of ethics?
CIMA’s code of ethics is made up of five fundamental principles:
- Integrity. Being straightforward, honest and truthful in all professional and business relationships.
- Professional competence and due care.
- Professional behaviour.
What is self review threat?
Self review threat
This occurs when an auditor has to review work that they previously performed. For example: if the external auditor prepared the financial statements and then audited them.
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