You are the audit senior on the audit of PXT Ltd for the year ended 31 January 2020. A former member of the audit engagement team for PXT Ltd left your firm two years ago to take up employment with this client. Identify and explain the potential threats to your firm’s objectivity and independence when auditing PXT Ltd and list two factors you w
You are the audit senior on the audit of PXT Ltd for the year ended 31 January 2020. A former member of the audit engagement team for PXT Ltd left your firm two years ago to take up employment with this client. Identify and explain the potential threats to your firm’s objectivity and independence when auditing PXT Ltd and list two factors you w
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
You are the audit senior on the audit of PXT Ltd for the year
ended 31 January 2020. A former member of the audit
engagement team for PXT Ltd left your firm two years ago to
take up employment with this client.
Identify and explain the potential threats to your firm’s
objectivity and independence when auditing PXT Ltd and list
two factors you would consider when assessing the
significance of these threats
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