Do some research on familiarity threat to independence. Explain this concept. Explain why this is a problem. Give examples of such a threat.

Has there been cases dealing with such a threat other than the ones discussed in the article? Give a summary of those cases.

Do you think this threat is real or is it overblown? Why? If you think it is real, how can such a threat be quantified (i.e. does it seem too subjective to be measured and dealt with?) Can a particular specific standard be issued to guide auditors in deciding the familiarity threat? Use the article as a guide in formulating our argument. On the other hand, if you think this threat is overblown, why do you think the SEC is drawing attention to it?

The article provides some suggestions to deal with the familiarity threat. Explain those recommendations. Which of these recommendations would be most effective to deal with that threat? Why?

If, during the audit, an auditor determines that he/she is facing a familiarity threat to independence, would you recommend they issue a disclaimer of opinion or continue in the audit and try to reduce this threat? Why?