You are the auditor of Speed Ltd and the chief financial officer has stated that he is concerned that you are taking up too much of his staff's time asking unnecessary questions for the audit.Further, he has indicated that your chances of getting the engagement to review the implementation of their new computer system engagement will be greatly improved if you keep your questioning of staff to a minimum during the current audit.What type of threat to your independence does this situation constitute?

Question

Quizplus · Accepted Answer

This situation constitutes a threat of intimidation to the auditor's independence as the CFO is trying to influence the auditor's behavior and restrict their questioning of staff during the current audit. The implied threat of losing the future engagement if the auditor does not comply adds to the intimidation factor. By limiting the auditor's questioning of staff, the auditor's ability to obtain sufficient and appropriate audit evidence may be impaired, which could impact the quality of the audit opinion.

You Are the Auditor of Speed Ltd and the Chief