Advocacy Threat in Auditing

Advocacy threat occurs when a firm or a member of the engagement team promotes, or may be perceived to promote an assurance client's position or opinion to the point that objectivity may, or may be perceived to be compromised. Such may be the case if a firm or member of the engagement team were to subordinate their judgement to that of the client.

Here are some examples of circumstances that may create this threat, but are mot limited to:

  • Dealing in, or being a promoter of share or other securities of the client.
  • Acting as an advocate on behalf of an assurance client in litigation or in resolving disputes with third parties. 

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