It becomes obvious that a member of a CPA firm has developed a close relationship with an attest client. This is an example of which type of threat to compliance with which of the rules under the AICPA's Code of Professional Conduct?
A) management participation
B) familiarity
C) self-review
D) undue influence

Question

Quizplus · Accepted Answer

The close relationship between a member of a CPA firm and an attest client represents a familiarity threat. Rule 1.110.010 of the AICPA's Code of Professional Conduct requires members to maintain objectivity and independence when providing attest services, which are compromised by familiarity threats.

It Becomes Obvious That a Member of a CPA Firm