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Most Audit Partners at CPA Firms Are Compensated Based on the Gross

Question 19

Multiple Choice

Most audit partners at CPA firms are compensated based on the gross billings or net CPA firm profits generated by the audit clients that they serve.As a result,when an audit partner serves a particular client for an extended period of time,which of the following threats is most likely to arise?


A) The self-interest threat
B) The advocacy threat
C) The adverse interest threat
D) The self-review threat

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