An intimidation threat occurs when
A) it is difficult to believe the actions of management because there is a suspicion of irregular activity with respect to the recording of transaction activity.
B) the auditor suspects that fraud has occurred at the middle management level of the organization.
C) the auditor has been working on a client engagement for many years and has trouble believing that management would deceive the auditors.
D) a client threatens the firm or its staff with respect to the content of the financial statements or with respect to the conduct of the audit.

Question

Quizplus · Accepted Answer

An intimidation threat occurs when a client threatens the firm or its staff with respect to the content of the financial statements or with respect to the conduct of the audit. This can include threats of legal action or personal attacks on the auditor, and can create a situation where the auditor is unable to perform their duties objectively and impartially. It is important for auditors to be aware of and respond appropriately to these types of threats.

An Intimidation Threat Occurs When