Threats to Independence

undue dependence on audit client's fees

• self interest threat

• self review threat

• intimidation threat

• advocacy threat

threat of legal action by audit client

• intimidation threat

• self review threat

• advocacy threat

• familiarity threat

defending audit client in a litigation

• self interest

• advocacy threat

• intimidation threat

• familiarity threat

senior auditor's long association with audit client

• self interest threat

• familiarity threat

• advocacy threat

• self review threat

Answer explanation

self review... would link to provision of other services while familiarity link towards relationships, including close family members/business partners etc.

assurance of employment with audit client

• self interest threat

• familiarity threat

• advocacy threat

• intimidation threat

business investments in audit client

• familiarity threat

• self review threat

• intimidation threat

• self interest threat

providing lucrative other services to audit client

• familiarity threat

• self review threat

• self interest threat

• intimidation threat

participates in management decisions

• self review threat

• self interest threat

• familiarity threat

• advocacy threat

gifts & hospitality from audit client

• familiarity threat

• self review threat

• self interest threat

• intimidation threat

providing compilations services to audit client

• self interest threat

• self review threat

• familiarity threat

• advocacy threat