Note: lecture is auditing

A. True or False (With explanation) - Marks 5 x 2 = 10 1. The auditor has to be independent in mind and not in appearance. (True/ False) Explanation: 2. The familiarity threat is different from Self-Interest threat. (True/False) Explanation: 3. If the first communication from a new auditor is not responded to by predecessor in case where existing auditor is superseded by new auditor, then new auditor does not have to send any more communication. (True False) Explanation: 4. Audit firms also create safeguards to eliminate the threat or reduce them to acceptable levels. (True/False) Explanation