Skip to content

Ask the Tutor ACCA AA

Gifts and hospitality

ANAnuja Nair9y ago
Hi sir, it is stated in my textbook that "accepting gifts and hospitality which are significant, from an audit client, can create self interest and familiarity threat " I understand that it creates a self interest threat because the auditor would not wish to upset the client in any way for fear of losing the benefit. But i dont understand how it creates a familiarity threat. Could you explain to me ?
kengarrettkengarrettTutor9y ago#1
Having lots of restaurant means with the client can lead to friendship/familiarity.
ANAnuja Nair9y ago#2
I get it now. Thank you sir.
Sign into reply to this topic.