ACCA AA Practice Questions - ACCA Applied Skills - Audit And Assurance (AA) Exam

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An audit firm's fees from a single listed client have represented more than 15% of total firm income for two consecutive years. Which threat to independence is most clearly created?

Self-interest threat from fee dependency Advocacy threat from promoting the client Familiarity threat from long association Intimidation threat from litigation

Correct Answer:

Self-interest threat from fee dependency

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