Which of the following situations would be an example of a self-review threat? Prior to commencing the audit engagement,PA has completed
A)personal and corporate tax returns.
B)the audit of a company where the client owns a minority interest.
C)a purchase price allocation calculation for a company that the client purchased during the year.
D)an audit of the not-for-profit organization of the client.

Question

Quizplus · Accepted Answer

A self-review threat occurs when an auditor is in a position to review their own work. In this case, completing a purchase price allocation calculation for a company that the client purchased during the year could lead to a self-review threat if the auditor later has to audit the financial statements that include this calculation.

Which of the Following Situations Would Be an Example of a Self-Review