An example of a self- interest threat is:
A) the auditor will promote a client's position.
B) the auditor not appropriately evaluating the results of an associate auditor.
C) a financial interest influencing the auditor's judgement.
D) the auditor being influenced by undue pressure from the audit client.

Question

Quizplus · Accepted Answer

A self-interest threat occurs when a financial or other interest affects the auditor's ability to make an unbiased and objective judgment. This can occur when the auditor has a financial interest in the client or when the auditor is influenced by personal relationships or other factors that could impair independence. Choice C describes a situation where the auditor's financial interest is likely to impact their judgment, which is an example of a self-interest threat.

An Example of a Self- Interest Threat Is