Where an independence threat occurs,it may be that only the person affected needs to be removed from the engagement.In this case,other members of the firm can complete the engagement.An example of a situation where only the student or member would be excluded from the engagement is where PA
A)has a significant financial interest in the client,such that influence could be exerted.
B)used to be a controller at the client,but now works for the PA firm.
C)owns ten percent of the shares of the client.
D)is a board member of the client with signing authority for cheques.

Question

Quizplus · Accepted Answer

If the student or member used to be a controller at the client, there is a risk that their personal relationship could influence their work on the engagement. However, if they are removed from the engagement, other members of the firm can complete the work without compromising independence.

Answer A,C and D pose a greater threat to independence and would likely require more significant steps to be taken, such as disengagement from the client altogether.

Where an Independence Threat Occurs,it May Be That Only the Person