Threats to the independence of auditors include:

Question

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All three types of threats - familiarity, self-interest, and advocacy - pose a risk to the independence of auditors. Familiarity threats arise when auditors develop close relationships with clients, which may compromise their ability to remain objective. Self-interest threats occur when auditors have a financial or other interest in the outcome of the audit, while advocacy threats arise when auditors promote or represent the interests of their clients over those of the public. It is essential for auditors to be aware of these threats and take steps to mitigate them to maintain their independence and ensure the integrity of the audit process.

Threats to the Independence of Auditors Include