Major threats to the independence of the auditor includes compensation schemes,familiarity with the client and time pressures.

Question

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Compensation schemes may incentivize auditors to overlook certain issues or to provide a favorable opinion in order to please the client and maintain their business. Familiarity with a client can also create conflicts of interest, as auditors may become too sympathetic to the client's interests or overlook irregularities because of their relationship. Time pressures can lead to rush jobs that overlook important details or fail to address significant issues in a comprehensive manner. All of these factors can compromise the independence of the auditor and undermine the value of the audit process.

Major Threats to the Independence of the Auditor Includes Compensation