The AICPA independence rule identifies seven types of threats. Use the AICPA Code of Conduct to list the seven types, and provide one practical example of each threat.
a) Self-interest threat - A CPA performs an audit for a company in which they own stock.
b) Self-review threat - A CPA audits financial statements prepared by their own accounting firm.
c) Advocacy threat - A CPA promotes a tax shelter scheme to clients.
d) Familiarity threat - A CPA audits a company where their close friend is the CEO.