If a member of the audit team, a member of that individual’s immediate family, or a firm has a direct financial interest or a material indirect financial interest in the audit client then: A. The auditor would have to hire outside auditors to help in the audit. B. The self-interest threat created would be so significant that no safeguards could reduce the threat to an acceptable level C. The auditors should not participate in the audit, but only act as supervisors D. The auditor may have to create new safeguards to counteract the threat.

Which of the following situations is  a potential self-interest threat?Group of answer choicesAn audit partner of a listed audit client has been invited to attend the Rugby Seven's tournament in England by a director of the client.The audit team is preparing to carry out its 2021 audit for Company ABC and the audit client management wanted to meet the entire audit team.The audit partner owns a some shares in Qantas as part of their superannuation portfolio.The audit client has asked the audit partner to attend a meeting with the Australian Taxation Office, who are questioning the client's Taxes Paid last year.

6. Which of the following would be considered a self-interest threat? A. Potential employment with an assurance client B. When a member of the assurance team was previously a director or officer of the assurance client C. Acting as the client’s advocate in a legal proceeding D. A member of the assurance team has a close family member who is a director or officer of the assurance client.Reset Selection

What is the role of internal auditors in responding to identified fraud risks? Group of answer choicesTake immediate disciplinary actionIgnore the risk to maintain confidentialityReport to external authoritiesEvaluate the adequacy of controls

A member of the assurance team being, or having recently been, employed by the client in a position to exert significant influence over the subject matter of the engagement will cause self review threatTrueFalse

Explain the components of audit risk