During her audit of Samtron Electronics, the client mentions to Yelena Diaz that it is planning to file litigation against her firm regarding the quality of work performed in a pri... During her audit of Samtron Electronics, the client mentions to Yelena Diaz that it is planning to file litigation against her firm regarding the quality of work performed in a prior year. Which type of threat is Yelena facing?
Understand the Problem
The question is asking which type of threat Yelena Diaz is facing in relation to her audit at Samtron Electronics, specifically in regard to potential litigation mentioned by the client. The options provided suggest different types of professional threats she could be encountering.
Answer
Adverse interest threat
The final answer is Adverse interest threat.
Answer for screen readers
The final answer is Adverse interest threat.
More Information
An adverse interest threat arises when there is a possibility of conflict between the auditor and the client, such as when litigation is threatened.
Tips
A common mistake is confusing this with advocacy threat, but advocacy involves promoting a client's interests.
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