4)

The auditor(professional accountant) is helping in selling Natco LLC Company to another company while also serving as the auditor for the company. The auditor may issue a favorable report to increase the sale price of Natco LLC. Which may occur when a professional accountant promotes a position or opinion to the point that subsequent objectivity may be compromised?

Self-interest threats

Advocacy threats

Familiarity threats

Self-review threats

5)

KPMG is the External Auditor for MAC Millam LLC .

Which of the following is not true about External Audit?

i. The scope is decided by the statue

ii. It is conducted by the employees of the company

iii. There is an obligation to conduct External Audit

iv. External Audit is conducted once in every 2 years

Only ii

Only iv

Both i and ii

Both ii and iv

6)

The auditors __________ safeguard the auditors ability to form an audit opinion without being affected by any kind of influences.

Objectivity

Integrity

Confidentiality

Independence