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Horti and Co, Question 31 of Kaplan rev kit, June 2022

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Horti and Co, Question 31 of Kaplan rev kit, June 2022

  • This topic has 1 reply, 2 voices, and was last updated 4 months ago by Kim Smith.
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  • February 27, 2022 at 5:31 pm #649469
    prthika6
    • Topics: 1
    • Replies: 0
    • ☆

    Which of the following statements correctly explains the possible threats to Horti & Co’s
    independence and recommends an appropriate safeguard in relation to the audit of Tree
    Co?
    1 An intimidation threat exists due to the overdue fee and Tree Co should be advised that
    all fees must be paid prior to the auditor’s report being signed
    2 A self?review threat exists due to the nature of the non?audit work which has been
    performed and an engagement quality control review should be carried out
    3 A self?interest threat exists due to the relationship between Charlie and Percy and
    Charlie should be removed as audit partner
    ? 1, 2 and 3
    ? 1 and 2 only
    ? 2 only
    ? 3 only

    Doesn’t the relationship between Charlie and Percy create a Familiarity threat?

    February 28, 2022 at 7:13 am #649493
    Kim Smith
    Keymaster
    • Topics: 88
    • Replies: 6090
    • ☆☆☆☆☆

    I think your question is answered here https://opentuition.com/topic/mj19-horti

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