threats to auditors–some confusion

Kkateker14y ago

dear tutor,

what are these should be classified to? self-interest or familiarity threads? because i've both classification in different books. in the exam which should i classify them?
hospitality and gifts
long time association and relationship between auditor and clients

and what about this? familiarity or self-review?
Being the former employee in the client's co., which can have impact on the audit.

Thanks in advance!!

kengarrettTutor14y ago#1

I don't think the classification is vital. What is important is that a threat is recognised.

So, gifts are self interest, bur perhaps arising from familiarity

I think being a former employee is a bit more clear cut. Unless the 'new' auditor was recently an employee and was auditing his/her own work, self-review isn't really an issue. However, familiarity could be a longer lasting problem as friendships can endure.

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