Types Of Threat

Answer 1

Here are the smart notes in sentence form:

• Threats to Compliance *

1. Self-Interest Threat occurs when financial or other interest influences judgment or behavior.
2. Self-Review Threat arises when previous judgments made or activities performed by the accountant or by another individual within the firm are not evaluated appropriately.
3. Advocacy Threat happens when promoting a client’s or employing organization’s position to the point that the accountant objectivity is comprised.
4. Familiarity Threat occurs when close relationships lead to excessive sympathy or acceptance.
5. Intimidation Threat arises when actual or perceived pressures deter objective action.