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Flynn- Kaplan 22-23 question 37

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › Flynn- Kaplan 22-23 question 37

  • This topic has 3 replies, 2 voices, and was last updated 2 years ago by Kim Smith.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 17, 2022 at 1:05 pm #671723
    akhila.vijay93
    Participant
    • Topics: 41
    • Replies: 43
    • ☆☆

    Hi Sir,
    How does Kelly Co have an advocacy threat by accepting the review engagement of Flynn Co?

    November 17, 2022 at 5:03 pm #671741
    Kim Smith
    Keymaster
    • Topics: 132
    • Replies: 8266
    • ☆☆☆☆☆

    Because the review is of the audit client’s business plan. Any assurance would appear to advocate management’s plans for the success of the business. Objectivity for the audit is threatened because the auditor will be aligned with management in wanting to see those plans realised (as reflected in the financial statements).

    November 18, 2022 at 5:04 am #671777
    akhila.vijay93
    Participant
    • Topics: 41
    • Replies: 43
    • ☆☆

    got it sir, Thank you

    November 18, 2022 at 7:19 am #671778
    Kim Smith
    Keymaster
    • Topics: 132
    • Replies: 8266
    • ☆☆☆☆☆

    You are welcome!

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Flynn- Kaplan 22-23 question 37’ is closed to new replies.

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