The adverse interest threat exists when:a. A client sues its auditor for incompetenceb. A CPA testifies in court, in response to a valid court subpoena, that it observed illegal activity taking place at the client's place of businessc. A CPA voluntarily testifies in court that its client incorrectly recorded cash proceeds as nontaxable loan proceeds rather than as a taxable saled. A CPA, in response to a formal SEC inquiry, states that it has serious concerns about the trustworthiness and candor of an audit client's CFO

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