Which of the following situations best describes an advocacy threat? PA has been hired to
A)consult with the corporate controller and the bank manager about the conditions for financing a loan.
B)manage the accounting department for three weeks while the corporate controller is on vacation.
C)complete the personal tax returns of all executive management.
D)prepare the year end journal entries for a subsidiary company.

Question

Quizplus · Accepted Answer

An advocacy threat occurs when a professional accountant promotes a position or opinion to the point that subsequent objectivity may be compromised. Consulting with the corporate controller and the bank manager about conditions for financing a loan could place the accountant in a position of advocating for the client's interests, potentially compromising objectivity.

Which of the Following Situations Best Describes an Advocacy Threat