11. You are the auditor of Crestview Co and have commenced planning for the2019 audit engagement. as part of your planning activities, you have asked the CEO about important events during the year that might have an impact on the audit. In response, he has asked you to 'take it easy' on the Chief Financial Officer because his son is seriously ill. Apparently, the child must travel regularly to the United States for expensive medical treatments.

What fraud risk factors are present in this situation?

Select one:

1. Incentive and opportunity
2. Incentive, opportunity and rationalisation
3. Incentive and rationalisation
4. Opportunity and rationalisation

12. An auditor leaves an audit firm and takes the role of the CFO of an audit client two months after completing the audit. This would involve some of the following threats. Select which three options are correct.

Select one or more:

1. Familiarity
2. Self-review
3. Self-interest
4. Intimidation

14. Which of the following actions would be considered as self-interest threats?

Select which two options are correct?

Select one or more:

1. An auditor has potential employment with an assurance client.
2. An auditor acts as an advocate on behalf of an assurance client.
3. A member of the assurance team is a director of the client.
4. One client provides a high percentage of total audit fees.