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Hi sir, for the self interest threats. It is given in my textbook as ” Where the auditor or an immediate or close family member has a financial or other interest in the client ”
I dont get it. Are they referring to a immediate or close family member of the auditor ?
Yes. If a close family member of yours held shares in a company you were auditing, you would want the family member to do well financially (assuming you liked them!), so that might influence you to allow, for example, profits in the company to be overstated.
For self interest threats, : over dependent on client for revenue , one of safeguards given is
” Disclosure to those charged with governance at the client”
Could you explain this statement to me ? Disclose what ? and what does it mean by disclose to those charged with governance at the client ?
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