Can anyone explain self review threat, self interest threat, advocacy threat and familiarity threat?

Question

aadarsh_rk · Answer

Thank you so much

Zainab · Answer

Self review threat : when an auditor will provide accounting and bookkeeping services or any other services which are invalid as per sec 144 related to maintaining accounts of company, it will create self review threat ( as auditor accounting kr rhe hai n vhi accounts check kr he hai ) Self interest threat : when auditor him self or his partner or his relatives ( beyond ₹1lacs of face value) holding interest i.e. securities will create self interest threat. ( Auditor apne fayde k liye company ko accha bata skta hai na uske intrest ki baat hai) Advocacy threat : auditor is giving legal advisory services, which will help u escape from litigations which in view of 3rd person is incorrect and put question on Auditor's independence is advocacy threat. Familiar threat : when company bod or members and Auditor are familiar to each other will pressurize auditor to save them and present that company is amazing , this is familiar threat. ( Auditor or company k log sath honge friends family types so auditor apni independence and objectivity and professional skeptisim ko side kr dega and unke according bhi chl skta hai )

Tripti · Answer

Familiarity threat - where auditor form relationship with client and become sympathetic to the client

Tripti · Answer

Advocacy threat - where auditor promote client opinion to a point where third party conclude that auditor objective is compromised

Tripti · Answer

Self review threat - when the member of the audit team was previously director or senior manager in the entity

Tripti · Answer

Self interest treat -when audit or audit firm has any financial interest in the client like significant business relationship or loan guarantee from client or potential employment with client .

Ronak · Answer

Someone - auditor

Ronak · Answer

Familiarity threat - When someone becomes too close to or friendly with a client or colleague, making it hard to stay objective

Ronak · Answer

Self review threat -When someone has to review or check their own previous work.

Ronak · Answer

Self interest threat -When a person (like an auditor or professional) might benefit personally from the outcome of their own work.

Rajashree · Answer

Self interest threat -audit firm or partner or associate that will benefit from financial interest in client

Can anyone explain self review threat, self interest threat, advocacy threat and familiarity threat?

11 answers

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