Which of the following is the best example of an intimidation threat? Management
A)has decided to sue you because the audit fee was twice as high as they expected.
B)has changed auditors of all of its subsidiary companies as they can get the audit done for a lower cost.
C)threatens to change auditors if you do not let them overstate accounts receivable by $100 000 (the bad debt allowance is too low).
D)threatens to resign from the company if the board of directors does not give them a 15% raise.

Question

Quizplus · Accepted Answer

Threatening to change auditors if the auditor does not allow the overstatement of accounts receivable is an example of an intimidation threat, as it is an attempt to coerce or pressure the auditor into making an unethical decision. Options A, B, and D are not examples of intimidation threats.

Which of the Following Is the Best Example of an Intimidation