Threats to the independence of auditors include:

Question

Quizplus · Accepted Answer

All three types of threats - self-interest, familiarity, and advocacy - can pose a risk to the independence of auditors. Self-interest threats may arise when the auditor has a financial or other interest in the client or the outcome of the audit. Familiarity threats may arise when the auditor has a close relationship with the client or its employees, which could lead to bias or a lack of professional skepticism. Advocacy threats may arise when the auditor advocates for the client or takes on an advocacy role, which could compromise objectivity and independence. Therefore, all of the above options are a threat to auditor independence.

Threats to the Independence of Auditors Include