All 18 Ethics & Independence questions
More in Ethics & Independence
What safeguards can mitigate threats to independence? How do audit fees create threats to independence? What is a familiarity threat and how is it managed? How does the conceptual framework approach to ethics work? What financial and business relationships threaten independence? What are the rules on providing non-audit services to audit clients? What are the rotation requirements for auditors of public interest entities? What is an Engagement Quality Control Review (EQCR/EQR) and when is it required? How does the auditor deal with a conflict of interest? How do intimidation threats arise and how are they addressed?
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What is an advocacy threat, with an example?

Intermediate

Answer

An advocacy threat arises when the auditor promotes a client's position or opinion to the point objectivity is compromised—e.g., representing the client in litigation or tax disputes, or promoting the client's shares. Such advocacy conflicts with the impartial stance an audit requires, so these activities for audit clients are restricted or prohibited.
Real-world example A firm acting as the audit client's advocate in a tax tribunal creates an advocacy threat to its audit objectivity.

Common follow-ups: Why does advocacy threaten objectivity? | What activities create it?

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All 18 Ethics & Independence questions