LetGrade SAOG has been audited by the same auditor for over 10 years and the auditor regularly plays football with the CEO and CFO of LetGrade SAOG. The auditor may have become well known with the client(LetGrade SAOG) and, thus, lack objectivity in their work.Which threat may occur in this case

LetGrade SAOG has been audited by the same auditor for over 10 years and the auditor regularly plays football with the CEO and CFO of LetGrade SAOG. The auditor may have become well known with the client(LetGrade SAOG) and, thus, lack objectivity in their work.Which threat may occur in this case

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 12MC: The external auditor of a company has certain requirements due to Sarbanes-Oxley. Which of the...

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Question

LetGrade SAOG has been audited by the same
auditor for over 10 years and the auditor regularly
plays football with the CEO and CFO of LetGrade
SAOG. The auditor may have become well known
with the client(LetGrade SAOG) and, thus, lack
objectivity in their work.Which threat may occur in
this case
Familiarity threats
Self-review threats
Self-interest threats
Advocacy threats

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