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Smith & Co (6/08)
In the misc invoice raised file, an invoice dated last week has been raised to a software supply company, which is not a client of your firm. The comment box on the invoice contains the note “Referral fee for recommending software supply company to several audit clients regarding the supply of bespoke accounting software”.
Isn’t the above an example of an advocacy threat, as we’re recommending a firm to one of our clients? The BPP kit states that this is a self-interest threat.
Thank you in advance, sir! 🙂
It’s clearly a threat! I’m not sure that the title of the threat or the classification is desperately relevant!
I would suggest that advocacy was more in the nature of advising about a course of trade or future actions re, for example, the take over of a competitor or the opening of a branch overseas.
Personally I’m leaning towards self-interest on this
Sorry not to be more definitive 🙁
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