Homework Clinic
Social Science Clinic => Accounting => Topic started by: fox on Jul 6, 2018
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The normal balance of an account is on the
a. plus side.
b. left side.
c. debit side.
d. right side.
e. credit side.
Question 2
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
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Answer to Question 1
A
Answer to Question 2
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.