{
  "data": {
    "audio": "blank",
    "scenarioText": "Question",
    "question": "<div>In the process of assessing the permissibility of a non-audit service for an AICPA audit client that is not planning to go public, you’ve determined there is a risk that the proposed work will impact the subject matter of your audit and the audit team will rely on judgements made or activities performed when providing the service. This means that the service fails the IESBA two-pronged Self-Review Threat test. Which of the following options is the correct next step? </div>",
    "instructionText": "Select the correct option, and then select Submit to proceed.",
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    "MCQ": {
      "responseType": "specific",
      "maxAttempts": "1",
      "correctAnswer": "1",
      "options": {
        "option": [
          "<span><p>A. Using the conceptual framework, evaluate whether threats are significant, and if so determine if safeguards can be applied to reduce threats to an acceptable level.</p></span>",
          "<span><p>B. Check if the Advice and Recommendations Exception can be applied to the non-audit service.</p></span>",
          "<span><p>C. Inform the proposing engagement team that the firm cannot deliver the non-audit services due to impermissibility.</p></span>",
          "<span><p>D. You do not need to do anything. Application of the two-pronged Self-Review Threat test does not apply to AICPA audit clients.</p></span>"
        ]
      },
      "feedback": {
        "genericResponse": {
          "incorrect": {
            "audio": "blank",
            "content": ""
          },
          "solution": {
            "audio": "blank",
            "content": ""
          },
          "correct": {
            "audio": "blank",
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          }
        },
        "specificResponse": {
          "response": [
            {
              "audio": "",
              "timeStamps": [],
              "content": "<p><b>You chose A, that’s correct.</b> If both prongs of the Self-Review Threat test are met and there is a risk that a self-review threat <i>might</i> be created, for AICPA audit clients (who are not planning to go public), you should apply the conceptual framework, and if threats are significant determine if safeguards can be applied to reduce threats to an acceptable level and then document the threats and safeguards in the Sentinel request.</p>"
            },
            {
              "audio": "",
              "timeStamps": [],
              "content": "<p><b>You chose B, that’s incorrect.</b> The Advice and Recommendations Exception should only be applied to non-audit services provided to public interest entity audit clients, including SEC audit clients or their affiliates. We would not apply the Advice and Recommendations Exception for AICPA audit clients unless they are planning to go public. If there is risk that a self-review threat <i>might</i> be created, for AICPA audit clients you should apply the conceptual framework and if threats are significant determine if safeguards can be applied to reduce threats to an acceptable level and then document the threats and safeguards in the Sentinel request.</p><p><b>Correct response A. Using the conceptual framework, evaluate whether threats are significant, and if so determine if safeguards can be applied to reduce threats to an acceptable level.</b></p>"
            },
            {
              "audio": "",
              "timeStamps": [],
              "content": "<p><b>You chose C, that’s incorrect.</b> If both prongs of the Self-Review Threat test are met and there is a risk that a self-review threat <i>might</i> be created, that does not necessarily mean that the service is automatically impermissible. For AICPA audit clients that are not planning to go public, we should determine if safeguards can be applied to reduce threats to an acceptable level and then document the threats and safeguards in the Sentinel&nbsp;request.</p><p><b>Correct response A.  Using the conceptual framework, evaluate whether threats are significant, and if so determine if safeguards can be applied to reduce threats to an acceptable level.</b></p>"
            },
            {
              "audio": "",
              "timeStamps": [],
              "content": "<p><b>You chose D, that’s incorrect.</b> Application of the two-pronged Self-Review Threat test is required for all audit clients, including AICPA audit clients. If both prongs of the Self-Review Threat test are met and there is a risk that a self-review threat <i>might</i> be created, for AICPA audit clients that are not planning to go public, we should continue to apply the conceptual framework like we would previously. We would evaluate whether threats are significant, and if threats are significant, determine if safeguards can be applied to reduce threats to an acceptable level and then document the threats and safeguards in the Sentinel&nbsp;request.</p><p><b>Correct response A. Using the conceptual framework, evaluate whether threats are significant, and if so determine if safeguards can be applied to reduce threats to an acceptable level.</b></p>"
            }
          ]
        }
      }
    }
  }
}