Steven Smith has been engaged by a counsel to assist a fellow CPA in an accounting malpractice action against Krynton Company.Five years back,Steven's wife used to work as finance manager for Krynton.During the engagement,Krynton warned Steven that his wife will be sued for financial treachery if the prevailing accounting malpractice action is ruled against the company.Which of the following is the threat faced by Steven Smith as per AICPA's Guide for Complying with Rules 102-505 (2008)?

Question

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The threat faced by Steven Smith is an undue influence threat. This is because Krynton has warned Steven that his wife will be sued for financial treachery if the accounting malpractice action is ruled against the company, which is an attempt to influence Steven's actions in the case. The AICPA's Guide for Complying with Rules 102-505 (2008) defines undue influence threat as the threat that an individual will act contrary to the interests of a client or employer because of threats from the client or employer.

Steven Smith Has Been Engaged by a Counsel to Assist