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threats to auditors–some confusion

This topic has 1 reply, 2 voices, and was last updated 10 years ago by Ken Garrett.

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June 8, 2012 at 3:25 pm #53232
kateker
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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!!
June 8, 2012 at 5:10 pm #99749
Ken Garrett
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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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