Occurs when a firm or a member of the assurance team

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49. Occurs when a firm or a member of the assurance team could benefit from a financial interest in, or other self-interest conflict with, an assurance client. a. Self-interest threat c. Advocacy threat b. Self-review threat d. Familiarity threat 50. Examples of circumstances that may create self-interest threat include 51. Which of the following least likely create “self-interest threat” 52. Occurs when any product or judgment of a previous assurance engagement or non-assurance engagement needs to be re-evaluated in reaching conclusions on the assurance engagement or when a member of the assurance team was previously a director or officer of the assurance client, or was an employee in a position to exert direct and significant influence over the subject matter of the assurance engagement. 53. Examples of circumstances that may create self-review threat least likely include a. Preparation of original data used to generate financial statements or preparation of other records that are the subject matter of the assurance engagement. b. A member of the assurance team being, or having recently been, an employee of the assurance client in a position to exert direct and significant influence over the subject matter of the assurance engagement. c. Performing services for an assurance client that directly affect the subject matter of the assurance engagement.
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Page 9 of 21 d. Potential employment with an assurance client. 54. Occurs when a firm, or a member of the assurance team, promotes, or may be perceived to promote, an assurance client’s position or opinion to the point that objectivity may, or may be perceived to be, compromised. Such may be the case if a firm or a member of the assurance team were to subordinate their judgment to that of the client. a. Self-interest threat c. Advocacy threat b. Self-review threat d. Familiarity threat
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  • Spring '10
  • Mr.Cula
  • Accounting, Accountant, Certified Public Accountant

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