Cliff Marsden Has Been an Audit Manager at Copeland

question 11

Multiple Choice

Cliff Marsden has been an audit manager at Copeland & Cahoon, CA's the past ten years. Two years ago he performed human resourcand 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 believthere 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:

Past Demand Data

Historical information on consumer demand for goods or services, used for forecasting and planning purposes.

Six-Week Moving Average

A method of smoothing data by calculating the average of six consecutive weeks' worth of data, continuously updated by adding the newest week and dropping the oldest week.

Point-Of-Sale Computers

Electronic systems used at retail checkout points to process sales transactions, manage inventory, and perform a variety of other retail management functions.

Forecasting Technique

Methods or models used to estimate future values based on historical data, trends, and patterns.