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Dear sir
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In ACCA answers, I’ve seen close family relationships as BOTH a familiarity threat and a self interest threat whereas in BPP it’s only under self interest threat. Familiarity refers to having the same Audit personnel for a long time.
My question is can we refer family relationships as a familiarity threat ?
Thanks
Familiarity is any threat arising from being too pally with the client. It becomes difficult to be objective.
So, long association with audit client can cause that but so too would auditing your brother’s company.
There is also a self interest threat as you do not want to cause family feuds. There can even be an intimidation threat if your big brother used to bully you when you were kids and that power relationship is still there.
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