Threats to independence include all of the following except:
A) Bias threat.
B) Familiarity threat.
C) Undue influence threat.
D) Management representation threat.

Question

Quizplus · Accepted Answer

All of the listed options, except management representation threat, can threaten independence. Bias threat refers to the possibility of auditors being influenced by their own interests or prejudices. Familiarity threat can arise when auditors have a close relationship with the client, which may lead to a lack of objectivity. Undue influence threat occurs when auditors are coerced or pressured by the client to alter their opinion or conclusions. However, management representation threat is not a threat to independence because it indicates that management did not provide truthful information but does not affect the auditor's ability to remain objective.

Threats to Independence Include All of the Following Except