An example of a management participation threat is:
A) Establishing and maintaining the budget for audit completion
B) Establishing and maintaining internal controls for the client
C) Initiating litigation against the client
D) Preparing source documents used to generate the client's financial statements

Question

Quizplus · Accepted Answer

Establishing and maintaining internal controls for the client is a management participation threat because it involves taking on a management role, which can impair the auditor's independence.

An Example of a Management Participation Threat Is