LetGrade SAOG has been audited by the same auditor for over 10 years and the auditor regularly plays football with the CEO and CFO of LetGrade SAOG. The auditor may have become well known with the client(LetGrade SAOG) and, thus, lack objectivity in their work.Which threat may occur in this case

LetGrade SAOG has been audited by the same auditor for over 10 years and the auditor regularly plays football with the CEO and CFO of LetGrade SAOG. The auditor may have become well known with the client(LetGrade SAOG) and, thus, lack objectivity in their work.Which threat may occur in this case

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

LetGrade SAOG has been audited by the same
auditor for over 10 years and the auditor regularly
plays football with the CEO and CFO of LetGrade
SAOG. The auditor may have become well known
with the client(LetGrade SAOG) and, thus, lack
objectivity in their work.Which threat may occur in
this case
Familiarity threats
Self-review threats
Self-interest threats
Advocacy threats

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