When should a PA assess the five threats to independence with respect to an audit engagement?
A)when deciding to accept a client or whether to continue an existing engagement
B)after signing the engagement letter and before commencing field work
C)after the completion of this year's audit,before starting the next engagement
D)after a discussion with the Board of Directors

Question

Quizplus · Accepted Answer

Assessing the five threats to independence is a vital part of determining whether to accept a client or continue an existing engagement. This assessment helps the PA to identify and mitigate any possible risks and threats to independence before commencing any fieldwork.

When Should a PA Assess the Five Threats to Independence