An audit partner has served as the lead audit partner on a client engagement for the past eight years.Which of the following is most likely to arise?

Question

Quizplus · Accepted Answer

The familiarity threat is the most likely to arise given that the audit partner has been on the engagement for eight years, which increases the risk of becoming too familiar with the client and possibly overlooking potential issues or risks.

The management participation threat may also be present if the audit partner has developed a close relationship with the client's management, potentially compromising their impartiality and objectivity.

The self-review threat may be present if the audit partner has been involved in the preparation of the client's financial statements or other aspects of their business, which could interfere with their ability to objectively assess their own work. However, this is less likely given that the audit partner's primary role is to provide independent assurance on the financial statements.

An Audit Partner Has Served as the Lead Audit Partner