John Miller Is Employed at an Auditing Firm Which Offers

question 32

Multiple Choice

John Miller is employed at an auditing firm which offers forensic accounting and income tax services.His next engagement is with a tax client,a partnership firm,to assist in the determination of a withdrawing partner's entitlement.The withdrawing partner owns another firm also and John's elder brother is an employee in that firm.Which of the following is the threat faced by John Miller as per AICPA's Guide for Complying with Rules 102-505 (2008) ?

• A) self-interest threat
• B) advocacy threat
• C) familiarity threat
• D) self-review threat

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Definitions:

Policy And Procedures Manual

A comprehensive document outlining the guidelines, practices, and standards of an organization or institution.

Continuing Education

Systematic professional learning experiences designed to augment knowledge and skills of healthcare professionals; education completed after the initial educational program; required for relicensure in some fields.

Gross Earnings

The total amount an employee earns before deductions.

Net Earnings

Take-home pay, calculated by subtracting total deductions from gross earnings.