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Becker Co is considering expanding the provision of non-audit services. Ingrid, senior manager in Becker Co, has suggested that the firm could offer recruitment advisory service to clients, specialising in the recruitment of finance professionals. Becker would charge a fee for this service based on the salary of the employee recruited. Ingrid worked as a recruitment consultant for a year before deciding to train as an accountant
it states that it creates a familiarity threat, I don’t understand why this would?
also if you recruit finance director the threat would be higher than junior staff members, can you explain why this is the case?
Thanks
If / where Ingrid has been instrumental in recruiting senior personnel to clients of Becker & Co, then she’s hardly likely to be independently minded when carrying out audit assignments where one of her appointees is in a position of influence. She wouldn’t wish to be critical to the clients’ other directors about the performance of her protégées.
Ok?
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