Threats to Auditor Independence Can Come from Various Sources

question 23

Multiple Choice

Threats to auditor independence can come from various sources. Which of these is referred to in the Code of Ethics as self-review threat?

• A) the possibility of potential employment with the audit client
• B) preparation of original data used to generate a financial statement that is the subject matter of the audit engagement
• C) concern on the part of the auditor about the possibility of losing the engagement.
• D) pressure to reduce inappropriately the extent of work performed in order to reduce fees.

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Definitions:

Access Files

The process of opening or retrieving files stored on a computer, server, or cloud storage.

Intranet

A private network accessible only to an organization's staff, often used to share information and computing resources within the organization.

Extranet

An extranet is a private network that allows controlled access to partners, vendors, and suppliers or an authorized set of users outside a company.

Wired Network

A network in which computers and other devices are connected to each other and to the internet or another network via physical cables.