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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › self-interest threat
Professor, how does self-interest threat arise in the following scenario?
“In addition, the creditworthiness of the prospective client should be considered as non-payment of fees can create a self-interest threat.”
Because if the auditor does the work and isn’t paid, unpaid fees are “akin to a loan” – i.e. the auditor has a financial interest.
