An accountant has worked closely with the same client's finance director for many years and they now holiday together. Which threat is most likely to arise?

Correct answer: C) Familiarity threat

Explanation

A familiarity threat arises from a long or close relationship with a client or employer, so that the accountant becomes too sympathetic to their interests or too accepting of their work. Rotation of senior staff and independent review are common safeguards against this threat.