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  • What are some examples of the adverse interest threat?

    The adverse interest threat is a threat that a member will not act with objectivity because the member’s interests are opposed to the client’s interests. Examples of adverse interest 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.

  • What are the three types of threats to independence?

    When conducting audits for both issuers and nonissuers, auditors must sustain independence. The auditor must be independent in mind and in appearance. There are several threats to specific engagement circumstances that might impair an auditor from sustaining independence. The visual below illustrates the three main types: