Advocacy

1. Threats

1.1. Legal services

1.1.1. Assurance firm is in a position of taking the client’s part in a dispute or somehow acting as their advocate

1.2. Corporate finance

1.2.1. Audit firm was involved in advice on debt restructuring and negotiate with the bank on the client’s behalf

1.3. Contingent fees

1.3.1. Audit fee were calculated on predetermined basis relating to the outcome of a transaction/result of services

2. Safeguards

2.1. Depend on the departments in the firm to carry out

2.2. Ultimate option: Withdraw from engagement