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Hello Mr Mike,
Hope you are fine.
Suppose an audit firm has an audit client and now it wants to also perform non-audit asdurance for that client.
the usual threats are self-review, self-interest, advocacy!But I am confused whether there is also any intimidation threat(for me it is very similar to the self-interest threat in this case )?!!!!
Obviously there is a self-interest threat as the audiyor may rely to much on the revenue generated from that non-assurance service and so it may affect their objectivity and thecaufit firm may try to keep the client happy in order to not lose the income.
BUT, my question is can we say the above things exactly for the INTIMIDATION threat too?
I mean the auditor FEARS to lose the income , so it will affect their objdvtivity??Or there is no intimidation threat and it is just a self-interest threat.
Thank you in advance, as always 🙂
Kind regards
Intimidation threat is rather more than fear of losing income. This is a positive threat from the client rather than a perceived threat in the auditor’s mind
Where the client says “Do this or else ….” that’s an intimidation situation whereas the auditor, with no input from the client, thinks to himself “If I do this then there will be a risk that …” – that would be a self-interest threat
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