What type of threat to independence arises when an accounting firm acts on behalf of its assurance client results?

Question

Quizplus · Accepted Answer

When an accounting firm acts on behalf of its assurance client results, an advocacy threat to independence arises. This is because the accounting firm may become too closely aligned with the interests of the client and lose objectivity in their auditing and assurance work.

What Type of Threat to Independence Arises When an Accounting