Steven Smith has been engaged by a counsel to assist a fellow CPA in an accounting malpractice action against Krynton Company. Five years back, Steven's wife used to work as finance manager for Krynton
During the engagement, Krynton warned Steven that his wife will be sued for financial treachery if the prevailing accounting malpractice action is ruled against the company. Which of the following is the threat faced by Steven Smith as per AICPA's Guide for Complying with Rules 102-505 (2008)?
A) familiarity threat
B) advocacy threat
C) undue influence threat
D) self-review threat
C
Explanation: C) Undue influence threat since Steven is coerced by Krynton to act in favor of the company by threatening to sue his wife.
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