A professional accounting firm has several audit and tax clients; however, a single client represents 40% of the firm's revenue. This situation could result in which of the following threats to professional independence?

Question

Quizplus · Accepted Answer

The situation described represents a threat to professional independence due to self-interest. The large proportion of revenue coming from a single client may create a situation where the accounting firm is reluctant to perform audit or tax work that may harm their relationship with the client and potentially result in a loss of revenue.

A Professional Accounting Firm Has Several Audit and Tax Clients;