What is the self-review threat?
The self-review threat is the threat that a member will not appropriately evaluate the results of a previous judgment made or service performed or supervised by the member or an individual in the member’s firm and that the member will rely on that service in forming a judgment as part of another service.
Examples of self-review threats include the following:
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What are some examples of the advocacy threat?
The advocacy threat is the threat that a member will promote a client’s interests or position to the point that his or her objectivity or independence is compromised. Some examples include:
What are some examples of the familiarity threat?
The familiarity threat is the threat that, due to a long or close relationship with a client, a member will become too sympathetic to the client’s interests or too accepting of the client’s work or product. Examples of familiarity threats include the following:
What are the threats to compliance that a CPA should be aware of?
Under the conceptual framework approach, members should identify threats to compliance with the rules and evaluate the significance of those threats. There are seven threats to compliance, which include the adverse interest threat, advocacy threat, familiarity threat, management participation threat, self-interest threat, self-review threat, and undue influence threat.