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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Horti and Co, Question 31 of Kaplan rev kit, June 2022
Which of the following statements correctly explains the possible threats to Horti & Co’s
independence and recommends an appropriate safeguard in relation to the audit of Tree
Co?
1 An intimidation threat exists due to the overdue fee and Tree Co should be advised that
all fees must be paid prior to the auditor’s report being signed
2 A self?review threat exists due to the nature of the non?audit work which has been
performed and an engagement quality control review should be carried out
3 A self?interest threat exists due to the relationship between Charlie and Percy and
Charlie should be removed as audit partner
? 1, 2 and 3
? 1 and 2 only
? 2 only
? 3 only
Doesn’t the relationship between Charlie and Percy create a Familiarity threat?
I think your question is answered here https://opentuition.com/topic/mj19-horti