Which of the following creates a self-review threat to auditor independence?

Question

Accepted Answer

Auditing financial statements the audit firm prepared for the client. Self-review arises where the auditor evaluates work previously performed by the firm, such as accounts the firm prepared, because the auditor is unlikely to be critical of the firm's own output.

Answer

A) Auditing financial statements the audit firm prepared for the client

Answer

B) Accepting a modest gift from a client

Answer

C) A long association with the client

Answer

D) Acting as an advocate in a tax dispute

Which of the following creates a self-review threat to auditor independence?

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