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” An audit partner’s sister is director of a company client.”
Sir, in this situation, we can eliminate the threat by removing the partner from this particular client’s engagement. Right?
And the audit firm does not need to resign altogether.Correct – you may be interested in the explanation here https://opentuition.com/topic/independence-2
Thanks Kim!
I actually asked to confirm my own stance,since in becker book the answer was that the firm should resign. I thought this is quite unreasonable.
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