Auditing and EthicsMCQQuestion 13193 of 300
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When an auditor promotes a client's position to the point that the auditor's objectivity is compromised (e.g. acting as an advocate for an audit client in litigation), which threat to independence arises?

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option B — Advocacy Threat

All Options:

  • AFamiliarity Threat
  • BAdvocacy Threat ✓
  • CSelf-Interest Threat
  • DIntimidation Threat

Detailed Solution & Explanation

Correct Answer: Option **B** (Advocacy Threat) **Auditing Standard / Ethical Provision (Professional Ethics - Threats to Independence):** The ICAI Code of Ethics defines Advocacy Threat as the threat that an auditor will promote a client's position or opinion to the point that subsequent objectivity may be compromised. Hence, Option B is the correct answer.

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