CAF-8 · Chapter 13 · Question 6 of 20
A small audit firm is asked to both prepare the financial statements and audit them for the same public interest entity (PIE). Which threat is most significant here?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Self-review threat
Explanation
A self-review threat occurs when an auditor audits their own work. If the auditor prepared the financial statements, they are unlikely to find their own errors during the audit.
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