Which term describes the type of threat which occurs when top management threatens to replace the audit firm because of a disagreement over an accounting issue?
A) Management participation threat.
B) Undue influence threat.
C) Adverse interest threat.
D) Financial self-interest threat.

Question

Quizplus · Accepted Answer

The scenario described in the question is an example of an undue influence threat, where top management can use its position of power to influence the auditor's objectivity and independence. The threat arises when management's interests affect the auditor's ability to carry out their responsibilities objectively.

Which Term Describes the Type of Threat Which Occurs When