Author Question: John Miller is employed at an auditing firm which offers forensic accounting and income tax ... (Read 265 times)

@Brianna17 · **on:** Jul 6, 2018

John Miller is employed at an auditing firm which offers forensic accounting and income tax services. His next engagement is with a tax client, a partnership firm, to assist in the determination of a withdrawing partner's entitlement.

The withdrawing partner owns another firm also and John's elder brother is an employee in that firm. Which of the following is the threat faced by John Miller as per AICPA's Guide for Complying with Rules 102-505 (2008)?
A) self-interest threat
B) advocacy threat
C) familiarity threat
D) self-review threat

Question 2

The owner's Drawing account is listed with the other expenses of a business.
Indicate whether the statement is true or false

momolu · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

A
Explanation: A) Self-interest threat because John can be influenced by the fact that the withdrawing partner is the employer of his brother and may act against the interest of other partners.

Answer to Question 2

F