Threats Arising from Employment and Other Relationships (5)

Question 1

What threat is created when an individual involved on an audit engagtement over a lnog-period of time?

Answer 1

Might create a familiarity and self-interest threats

Question 2

Safeguards to threat created when an individual involved on an audit engagtement over a long-period of time?

Answer 2

Independent partner review
Independent quality review
Rotate senior staff

Question 3

Public interest entities, the Code sets outs a compulsory cooling-off period. These are as follows?

Answer 3

Engagement partner

Indivudal responsible for engagement quality review

Key audit partner

Question 4

Engagement partner safeguards

Answer 4

Rotate after: Seven years
Cooling-off period: Five years

Question 5

Individual responsible for the engagement quality review

Answer 5

Rotate after: Seven years
Cooling-off period: Three years

Question 6

Key audit partner

Answer 6

Rotate after: Seven years
Cooling-off period: Two years

Question 7

What is a key audit partner?

Answer 7

An audit partner on the engagement team responsible for key decisions on significant matter with respect to audit of financial statements where firm expresses an opinion