what is meant by inherent risk n advocacy threat??
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risk n threat
14y ago#1Ingerent risk is the risk that an error is made in the first place, ie before taking into account any controls and audit work that might prevent or detect the error.
Advocacy threat arises if the auditor gives support (advocates) a client. The auditor will then want that support to look as though it was justified so might, for example, let the client overstate profits.
Advocacy threat arises if the auditor gives support (advocates) a client. The auditor will then want that support to look as though it was justified so might, for example, let the client overstate profits.
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