The Code cites familiarity and self-interest as a threat to independence. The EC Green Paper states “Situations where a company has appointed the same audit firm for decades seem incompatible with desirable standards of independence.” This reflects the familiarity threat.
Threats to Auditor Independence – Overview, List of Issues …
The Aicpa Code Of Professional Conduct Indicates That …
Threats to Auditor Independence – Overview, List of Issues …
8/25/2019 · A familiarity threat exists if the auditor is too personally close to or familiar with employees, officers, or directors of the client company. Example ABC Company has been audited by the same auditor for over 10 years and the auditor regularly plays golf with the CEO and CFO of ABC Company.
6/28/2008 · Another factor which has been implicit in many studies of auditor independence is the close nature of the relationship between the auditor and the directors of the company. This has been termed the ‘Familiarity Threat’.
8/26/2020 · 4. Familiarity Threat There is familiarity threat if the auditor has a close relationship to or too familiar with staffers, officers, or directors of the client company. Example of familiarity threat The audit of XYZ Company is done by the same auditor for more than 10 years and the auditor often plays snooker with the CEO and CFO of XYZ …
Ans.Threats: It has created self interest, familiarity and intimidation threats. The assurance team’s independence is threatened, on account of the fact that Mr.A is in a position to exert direct and significant influence over the assurance engagement as Mr.A was a member of the assurance team during the previous year audit.
1/16/2020 · A familiarity threat is the threat that due to a long or close relationship with a client or employer, a professional accountant will be too sympathetic to their interests or too accepting of their work (100.12 (d)). Click to see full answer.
A familiarity threat is the threat that due to a long or close relationship with a client or employer, a professional accountant will be too sympathetic to their interests or too accepting of their work (100.12 (d)). Click to see full answer.
5/21/2020 · There may exist family and personal relationships between member of audit team and audit client. This creates self-interest and familiarity threats towards audit independence. Immediate family relationships contain direct linear relationship and direct vertical …
