Question: If we are the current auditor of a client, which ONE of the following activities creates both a Management and Familiarity threat to independence? A:

If we are the current auditor of a client, which ONE of the following activities creates both a Management and Familiarity threat to independence?

A: Accepting a significant gift or hospitality from a client.

B: The engagement partner has been partner on the same listed client for

5

years.

C: The audit firm has been asked to help select accounting software for a client immediately after accepting the engagement.

D: An audit firm has been asked to carry out recruitment services for its client by recruiting senior accounting staff. One of the staff recruited is the audit Senior Manager's sister.

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