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for the question requirement b ii)where they ask for ethical implications, is to correct to say there would be a familarity threat if the auditors provide advisory service to juliet co as such a business relationship would sometimes make the auditors to trust the client too much such tht professional scepticism wouldnt be shown.
I would have thought that self-review and self-interest were more apparent
Familiarity threat? Yes, I suppose. But not because of trust as you suggest. It would be more due to the auditors being so familiar with the client and the client’s activities (and history) that the auditors fail to see beyond what they expect to see.
There’s a lack of fresh eyes
That would be my take on a familiarity threat
OK?
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