Threats Arising from Employment and Other Relationships (6) Flashcards
1
Q
What happens when litigation with an audit client occurs?
A
Self-interest and intimidation threats are created
2
Q
Safeguards for litigation with an audit client (Disclose)
A
Disclose to the audit committee
3
Q
Safeguards for litigation with an audit client (Removal)
A
Removal of individual involved in litigation from the assurance team
4
Q
Safeguards for litigation with an audit client (Refuse)
A
Refuse to perform the assurance engagement
