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Complete the following table by classifying each threat as either a Self - Interest ( 1 ) . Self - Review ( 2 ) .
Complete the following table by classifying each threat as either a SelfInterest SelfReview Advocacy Intimidation Threat tabletableThreats to Audit IndependenceThe audit firm hanClassifytableThe audit firm has a consulting contract with the audit clientto prepare a draft set of financial statements.tableThe audit partner was requested by the client to appear at apress conference to launch the client's new shareprospectustableA former partner of the audit firm is now a director of thefirm he previously audited.tableThe audit client is claiming they will replace the currentaudit firm because of a disagreement on the way the auditfirms insists the client must account for research anddevelopment costs.tableAn auditor member has an indirect financial interest in theclienttableAudit staff authorise client transactions and prepare sourcedocument for the client,tableAudit fees for one client represents of the auditorstotal audit fees.tableA member of the audit team owns shares in the audit clientamounting to of its issued shares.tableThe audit fees include a bonus contingent on the clientreceiving a loan.tableThe auditor engagement partner for the client has beld thatposition for the past eight years.
Complete the following table by classifying each threat as either a SelfInterest SelfReview Advocacy Intimidation Threat
tabletableThreats to Audit IndependenceThe audit firm hanClassifytableThe audit firm has a consulting contract with the audit clientto prepare a draft set of financial statements.tableThe audit partner was requested by the client to appear at apress conference to launch the client's new shareprospectustableA former partner of the audit firm is now a director of thefirm he previously audited.tableThe audit client is claiming they will replace the currentaudit firm because of a disagreement on the way the auditfirms insists the client must account for research anddevelopment costs.tableAn auditor member has an indirect financial interest in theclienttableAudit staff authorise client transactions and prepare sourcedocument for the client,tableAudit fees for one client represents of the auditorstotal audit fees.tableA member of the audit team owns shares in the audit clientamounting to of its issued shares.tableThe audit fees include a bonus contingent on the clientreceiving a loan.tableThe auditor engagement partner for the client has beld thatposition for the past eight years.
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