6. Which of the following would be considered a self-interest threat? A. Potential employment with an assurance client B. When a member of the assurance team was previously a director or officer of the assurance client C. Acting as the client’s advocate in a legal proceeding D. A member of the assurance team has a close family member who is a director or officer of the assurance client.Reset Selection
Question
- Which of the following would be considered a self-interest threat? A. Potential employment with an assurance client B. When a member of the assurance team was previously a director or officer of the assurance client C. Acting as the client’s advocate in a legal proceeding D. A member of the assurance team has a close family member who is a director or officer of the assurance client.Reset Selection
Solution
All of the options A, B, C, and D can be considered as self-interest threats.
A. Potential employment with an assurance client: This can be a self-interest threat because the assurance team member might be biased in their work, hoping to secure a job with the client in the future.
B. When a member of the assurance team was previously a director or officer of the assurance client: This can be a self-interest threat because the team member might have a bias towards the client due to their previous relationship.
C. Acting as the client’s advocate in a legal proceeding: This can be a self-interest threat because the assurance team member might not be objective in their work, as they are advocating for the client.
D. A member of the assurance team has a close family member who is a director or officer of the assurance client: This can be a self-interest threat because the team member might be biased due to their close family relationship with the client.
Similar Questions
If a member of the audit team, a member of that individual’s immediate family, or a firm has a direct financial interest or a material indirect financial interest in the audit client then: A. The auditor would have to hire outside auditors to help in the audit. B. The self-interest threat created would be so significant that no safeguards could reduce the threat to an acceptable level C. The auditors should not participate in the audit, but only act as supervisors D. The auditor may have to create new safeguards to counteract the threat.
A member of the assurance team being, or having recently been, employed by the client in a position to exert significant influence over the subject matter of the engagement will cause self review threatTrueFalse
Which of the following situations is a potential self-interest threat?Group of answer choicesAn audit partner of a listed audit client has been invited to attend the Rugby Seven's tournament in England by a director of the client.The audit team is preparing to carry out its 2021 audit for Company ABC and the audit client management wanted to meet the entire audit team.The audit partner owns a some shares in Qantas as part of their superannuation portfolio.The audit client has asked the audit partner to attend a meeting with the Australian Taxation Office, who are questioning the client's Taxes Paid last year.
Which of the following entities may be an internal threat to an organization? Select three answers.1 pointTrusted partnersVendorsEmployeesCustomers
A situation in which an engineer’s loyalty and obligations may be compromised because of self-interests or other loyalties and obligations.A.Interaction rulesB.Conceptual issueC.Conflict of interestD.Concern of interest
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.