Ethics From the following list:

a self-interest b self-review c advocacy d familiarity e intimidation State what type of threat each of the following situations provides.

1 Your client is suffering financial hardship, and has advised you that unless audit fees are dropped by 50 per cent the client will put the audit out to tender.

2 An audit client has temporary staff shortages, and another division of your firm provides staff to help out in preparing the financial statements.

3 Your major audit client is growing quickly, and now accounts for 40 per cent of your total fees.