Threats to Independence

Question 1

Self interest

Answer 1

the threat that a financial or other interest will inappropriately influence an auditor’s judgment or behavior

Question 2

Self review

Answer 2

the threat that an auditor or audit organization that has provided nonaudit services will not appropriately evaluate the results of previous judgments made or services performed as part of the nonaudit services when forming a judgment significant to an audit

Question 3

Bias

Answer 3

the threat that an auditor will, as a result of political, ideological, social, or other convictions, take a position that is not objective

Question 4

Familiarity

Answer 4

the threat that aspects of a relationship with management or personnel of an audited entity, such as a close or long relationship, or that of an immediate or close family member, will lead an auditor to take a position that is not objective

Question 5

Under influence

Answer 5

the threat that external influences or pressures will impact an auditor’s ability to make independent and objective judgments

Question 6

Management participation

Answer 6

the threat that results from an auditor’s taking on the role of management or otherwise performing management functions on behalf of the entity undergoing an audit

Question 7

Structural

Answer 7

the threat that an audit organization’s placement within a government entity, in combination with the structure of the government entity being audited, will impact the audit organization’s ability to perform work and report results objectively