Question

When a CPA makes a whistleblowing charge against the employer under SOX or Dodd Frank, a(n) ___ threat arises.

A) Familiarity
B) Advocacy
C) Adverse
D) Undue Influence

Answer 1

An advocacy threat arises when a CPA becomes a whistleblower against their employer under SOX or Dodd-Frank, as this may compromise their objectivity or independence.

Step-by-step explanation:

When a CPA makes a whistleblowing charge against their employer under the Sarbanes-Oxley Act (SOX) or the Dodd-Frank Wall Street Reform and Consumer Protection Act, a(n) advocacy threat arises. This type of threat occurs when the CPA's objectivity or independence is compromised due to taking a position against their employer, potentially leading to a conflict of interest. It is essential for an accountant to maintain independence in both fact and appearance, and whistleblowing could put the accountant in an adversarial position with the employer.