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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Company wants auditor….
Hello
Sir if there is a threat mentioned in a scenario that “Company wants auditor to represent the company in a dispute with tax authorities”
For its explanation would it be correct and valid to say that “This constitutes advocacy threat as firm may promote an opinion on behalf of the company such that independence of the firm is compromised. Additionally, the outcome of these issues may have a material impact on the financial statements, resulting in a self-review threat”
And for its safeguard would it be correct and valid to say that “Due to the possibility of these issues having a material impact on the financial statements and the advocacy threat, the firm should politely declines this request”
Why do you think your answer is not right? The threat, its effect and its remedy are really simple. You need to be able to make your own judgement on something so straightforward rather than seeking validation..
I will say no more on this.