When a public accountant (PA) and a client move into an adversary relationship and away from the cooperative one needed in an assurance engagement, independence is threatened by appearances of the PA trying to serve his or her own best interests.

Question

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When a PA and client have an adversary relationship, it creates a conflict of interest that threatens the independence of the PA. The PA must maintain a cooperative relationship with the client to ensure they are serving the public's best interests and not their own.

When a Public Accountant (PA) and a Client Move into an Adversary