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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › Bpp revision kit Q3 Becker-Self-review threat
Hi,
Why makes management decision for an audit client is seen as self-review threat? For example, why make decision of who to recruit is self-review?
Thank you.
I do not have a copy of the kit but in another version of this past exam question is states that recruitment services create threats of self-interest, familiarity and intimidation (I don’t see self-review).
A “management threat” that is created when an audit firm undertakes an activity that is management’s responsibility, is not a separate category of threat. As the provision of recruitment services illustrates the threats that may arise fall into other categories.
An example of a management responsibility that would give rise to a self-review threat would be if the auditor assumed responsibility for an amount in the financial statements (e.g. a valuation).