A firm's audit team includes a manager who prepared the client's accounting records earlier in the year before transferring to the audit department. Which threat does this create?

Correct answer: D) Self-review threat

Explanation

A self-review threat arises when a professional accountant evaluates work that they, or their firm, performed previously, so they may not spot or may be reluctant to admit their own errors. The manager would be auditing records they prepared. There is no pressure (intimidation), promotion of the client (advocacy) or direct financial interest (self-interest) in the scenario.