Advocacy threat
An advocacy threat arises when a professional accountant promotes a client’s position to a degree that objectivity may be compromised. It can arise in litigation support or promotion of securities, depending on the facts and applicable rules. The firm evaluates the threat and complies with any prohibition.
Worked example
An audit firm is asked to publicly promote the client’s share issue while also auditing the financial statements.
Common mistake
Do not equate every client communication with advocacy; evaluate the role and specific independence requirements.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |