Cliff Marsden Has Been an Audit Manager at Copeland

question 38

Multiple Choice

Cliff Marsden has been an audit manager at Copeland & Cahoon, CPA's the past ten years. Two years ago, he performed human resources and internal audit functions for 9 months while his client underwent a major restructuring. His firm has a policy of changing audit partners and
Managers every five to seven years. He is reluctant to take on the audit because he believes there is an independence threat. Which threat is in play?

• A) integrity threat
• B) familiarity threat
• C) self-review threat
• D) advocacy threat

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Definitions:

Goals

Objectives or desired outcomes that individuals or organizations aim to achieve within a specific time frame.

Expectancy Theory

A motivational theory suggesting that people are motivated to act in certain ways based on their expectations of the outcome and the value they place on that outcome.

Specific Rewards

Targeted benefits or incentives provided to individuals or groups for achieving certain goals or performance criteria.

Leaders

Individuals who influence and guide others toward achieving common goals through vision, inspiration, and strategic direction.