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Juniper auditors are beginning the audit of Star Enterprises, a small business and new audit client for Juniper. It has been determined that one
Juniper auditors are beginning the audit of Star Enterprises, a small business and new audit client for Juniper. It has been determined that one of Star Enterprises' key officers is the spouse of an audit manager that has been assigned to this client. In addition, Juniper has indicated that help will be needed in other areas such as providing bookkeeping services. Which of the choices below correctly represent the threats to independence that may exist in this situation? (Select all that apply.) A familiarity threat may exist in that the manager may become too close to the audit client. An advocacy threat may exist because the manager may not act objectively due to a potential conflict of interest. An adverse interest threat may exist due to Juniper informing star that they are currently pursuing litigation against the predecessor auditor. A management participation threat may exist due to the client asking the auditor to perform extra services which may cause the CPA to make management decisions.
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