Which of the following situations would be an example a of self-review threat? Prior to commencing the audit engagement, PA has completed
A) personal and corporate tax returns.
B) audit of a company where the client owns a minority interest.
C) purchase price allocation calculation for a company that the client purchased during the year.
D) audit of the non-for profit organization of the client.

Question

Quizplus · Accepted Answer

A self-review threat occurs when an auditor has to evaluate their own work or the work done by their firm. In option C, the auditor is reviewing the purchase price allocation calculation they completed, which could impair their objectivity.

Which of the Following Situations Would Be an Example a of Self-Review