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Hi
There was a threat in scenario that Company’s FD has asked if a member of audit team can be seconded to fill the role of financial controller.
For its explanation would it be correct to say that this constitutes self-review threat as being as financial controller he would be involved in preparation of F/S and now he would auditing them again therefore it is unlikely that he will identify his own mistakes.
For its safeguard would it be correct to say that This team member who would be seconded to fill the role of financial controller. should not be sent on audit and some other team member should conduct audit of this kind
As well as self review there are self-interest threats (so not wanting to criticise a colleague) and familiarity (eg undue trust in a colleague). The FC is also a management position and auditors should not participate in that.
Your solution is probably ok in a private company but not for a public interest company as greater care is needed there.
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