List five threats to auditor independence and provide an example of each

Question

Quizplus · Accepted Answer

The Answer is -Self-interest threats, which may occur as a result of the financial or other interests of a professional accountant or of an immediate or close family member. Example: Insider trading
- Self-review threats, which may occur when a previous judgement needs to be re-evaluated by the accountant originally responsible for that judgement. Example: Auditing accounts prepared by the auditor
- Advocacy threats, which may occur when an accountant promotes a position or opinion to the point that subsequent objectivity may be compromised. Example: Representing a client at a tribunal
-Familiarity threats, which may occur when, because of a close relationship, a professional accountant becomes too sympathetic to the interests of others. Example: Work with small family companies
-Intimidation threats, which may occur when a professional accountant may be deterred from acting objectively by threats, actual or perceived. Example: Threatened removal of audit to influence opinion

List Five Threats to Auditor Independence and Provide an Example