An officer participates in litigation against the CPA firm. This is an example of which type of threat to compliance with which of the rules under the AICPA's Code of Professional Conduct?

Question

Kara Hanna

Business

24 March, 05:50

An officer participates in litigation against the CPA firm. This is an example of which type of threat to compliance with which of the rules under the AICPA's Code of Professional Conduct?

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Octavio Bradford · Answer 1

Answer: An officer participates in litigation against the CPA firm. This is an example of Adverse interest.

Explanation:

This is an example of Adverse interest. Adverse here means against the interest of others. This type of interest in mostly found in case of property disputes. Like if a person has illegally occupied someone else's property than his interest in that property will be adverse the interest of the real owner of that property.

Similarly here an officer is participating in legal action against CPA firm, The interest of an officer will be an adverse.