ICAEW ARF · Chapter 10 · Question 9 of 12
An audit client offers the audit team free tickets to a major sporting event as thanks for their work. What should the audit team do?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Decline the tickets unless their value is trivial and inconsequential
Explanation
Gifts and hospitality from an audit client create self-interest and familiarity threats. They should be accepted only if a reasonable and informed third party would consider them trivial and inconsequential. Valuable tickets to a major event are unlikely to meet this test, and disclosure in the report is not an acceptable safeguard.
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