A new audit client was taken on by a professional accountant's firm. The fee for this client's audit engagement is significantly lower than that charged by the prior accountants. This situation could result in which of the following threats to professional independence?

Question

Quizplus · Accepted Answer

The situation described does not inherently lead to threats such as self-review, intimidation, advocacy, or familiarity. The lower fee does not directly create a conflict of interest or compromise the auditor's independence in the context of the threats listed.

A New Audit Client Was Taken on by a Professional