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what is the ethical threat when a client asks for discount as a commission when they...

what is the ethical threat when a client asks for discount as a commission when they recommend other firms to the audit firm?

Is it self interest or self review or advocacy or familiarity or intimidation threat?

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Answer #1

When a client asks for discount as a commission whent they recommend other firms to the audit firm - It is a SELF INTEREST ethical threat.

Self Interest ethical threat is a threat to auditor's independence and objectivity when the financial interest of the auditor is involved. To get any financial advantage, the auditor compromises with the ethical auditing principles.

In the given question, the auditor to get other firms audit in exchange of giving discount as a commission to client, is against auditing principles.

Therefore, the correct answer is Self interest threat.

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