Threats Arising from Employment and Other Relationships (4)

Question 1

What happens where a partner of employee of the firm leaves to join an audit client?

Answer 1

Creates a self-interest, familiarity or intimidation threat

Question 2

What happens where a partner of employee of the firm leaves to join an audit client safeguards (Change)

Answer 2

Change members of audit team

Question 3

What happens where a partner of employee of the firm leaves to join an audit client safeguards (Review)

Answer 3

Review by an appropriate reviewer

Question 4

What happens where a partner of employee of the firm leaves to join an audit client safeguards (Quality)

Answer 4

Quality review

Question 5

What happens where a partner of employee of the firm leaves to join an audit client safeguards (Public interest entities)

Answer 5

Independence is compromised of indiviudual who was key audit partner joins as employee able to exert significant influence over preparation of finanicla statements

Question 6

Subsequent to role change individual ceasing to be audit partner (client)

Answer 6

Audit client has issued audited FS covering a period of not less than 12 months

Question 7

Subsequent to role change individual ceasing to be audit partner (team member)

Answer 7

The individual was not an audit team member with respect to audit of those financial statements

Question 8

What happens wherre a director/officer of employee of audit client leaves the audit client to join the firm

Answer 8

Self-interest, self-review or familiarity threat might be created

Question 9

Self-interest, self-review or familiarity threat might be created (safeguards)

Answer 9

Individuals should not be assigned to audit team if work they performed whilst employed by client is evaluated in current period as part of current audit engagement