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    PracticeACCAACCA BT — Business & Technology Practice Exam 1Question 28
    Medium2 marksMultiple Choice
    Syllabus F: Professional ethicsSection ASyllabus FProfessional EthicsEthical Threats

    ACCA · Question 28 · Syllabus F: Professional ethics

    An accounting firm is acting as the external auditor for a tech startup. The startup is looking for investors, and the audit partner agrees to speak at a roadshow to actively promote the startup's shares to potential venture capitalists. Which ethical threat does this action create?

    Answer options:

    A.

    Self-interest threat

    B.

    Self-review threat

    C.

    Advocacy threat

    D.

    Familiarity threat

    How to approach this question

    Identify the action: 'promoting the client's shares'. Match this to the threat of acting as an advocate.

    Full Answer

    C.Advocacy threat✓ Correct
    An advocacy threat occurs when a professional accountant promotes a client's or employer's position to the point that their objectivity is compromised. Selling, underwriting, or promoting a client's shares is a severe advocacy threat.

    Common mistakes

    Confusing it with self-interest. Advocacy is the specific threat generated by representing or promoting the client to third parties.
    Question 27All questionsQuestion 29

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