Familiarity threat
A familiarity threat arises when a close or long-standing relationship makes a professional accountant too sympathetic to another’s interests or too accepting of their work. The firm considers the relationship, the role involved and safeguards or restrictions that apply.
Worked example
A senior audit team member has a close family relationship with the client’s finance director.
Common mistake
Do not assume that simply disclosing a close relationship resolves every independence conflict.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |