A CPA performs bookkeeping services for a client and then performs an audit of those financial statements. This is an example of a ________ threat.
A) familiarity
B) self-interest
C) self-review
D) management participation

Question

Quizplus · Accepted Answer

This is an example of a self-review threat, which occurs when a member of an audit or attestation team is asked to evaluate their own work or a judgment made by themselves or their firm. In this case, the CPA who performed bookkeeping services is evaluating their own work in the subsequent audit, creating a self-review threat.

A CPA Performs Bookkeeping Services for a Client and Then