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self interest threat: client staff to audit firm

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › self interest threat: client staff to audit firm

  • This topic has 2 replies, 3 voices, and was last updated 1 year ago by Kim Smith.
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  • September 5, 2021 at 6:49 am #634366
    Noah098
    Member
    • Topics: 935
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    maam how does a self interest threat arises when client staff joins audit firm?

    September 5, 2021 at 6:00 pm #634489
    sahersk
    Participant
    • Topics: 32
    • Replies: 22
    • ☆☆

    it would be a self review threat right?

    September 5, 2021 at 6:32 pm #634491
    Kim Smith
    Keymaster
    • Topics: 100
    • Replies: 6786
    • ☆☆☆☆☆

    Audit firm -> audit client gives rise to self-interest, familiarity or intimidation.

    Audit client -> audit firm/ream may create self-interest, self-review and familiarity threats. This would be particularly true when a member of the audit team has to report on, for example, elements of the financial statements he had prepared while with the audit client.

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