Threats to an auditor's independence may occur when the auditor has a long-standing relationship with an important person associated with the client.

Question

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According to the International Federation of Accountants (IFAC), threats to an auditor's independence may occur due to a long-standing relationship with an important person associated with the client. This is known as a familiarity threat. Other threats to independence include self-interest, self-review, advocacy, and intimidation.

Threats to an Auditor's Independence May Occur When the Auditor