[11/16, 2:25 PM] Archana Bakshi: Good afternoon sir. Sir in ACCA audit syllabus, it is given that advocacy is a threat to objectivity of auditor. In ‘advocacy’ it is written 1. Representing the client 2. Promoting the client 3. Negotiating on behalf of the client [11/16, 2:25 PM] Archana Bakshi: Sir pls explain these 3 points. I was not able to understand them [11/16, 2:56 PM] Archana Bakshi: Sir pls tell are we not allowed to provide tax computation services to our audit client?

1 answer

Ravi Staff November 19, 2017

First of all threats doesn’t mean Disqualification
Here threats means chances that objectivity is in problem, with proper steps can mitigate / compesate it 
If you are representing (say in SEBI case for co)
Promoting (so that company should get licence or contract )
Negotiating (with employees)
These means you are taking clients side and helping them perform better , you are advocating for them , this will make it difficult to give negative reports hence it is a threat 
Disqualification as per law is different, yes auditor can give tax consultancy as per company act 


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