The current auditor of CTT Company Limited (CTT), the largest property management group in Hong Kong, will resign after the
The current auditor of CTT Company Limited (“CTT”), the largest property management group in Hong Kong, will resign after the Ƥnancial statements audit for the year ended 31 December 2021. Tony, a partner of Brilliant CPA Limited, hears that the quotations offered by other CPA Ƥrms on CTT’s audit engagement for the year ended 31 December 2022 are at the range of HK$19,000,000 to HK$19,500,000. In order to win this audit engagement, Tony only quotes HK$9,000,000 for this mentioned audit engagement. Which of the following threats to compliance with the Code of Ethics for Professional Accountants does Tony face in the above situation?
(a) Self-interest threat.
(b) Advocacy threat.
(c) Familiarity threat.