ICAEW ARF · Chapter 10 · Question 5 of 12
The finance director of an audit client tells the audit partner that the company will change auditors unless the partner agrees to a favourable accounting treatment. Which threat does this create?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Intimidation
Explanation
An intimidation threat arises when the auditor is deterred from acting objectively by actual or perceived pressure, such as a threat of dismissal. The partner should not give in to the pressure and should consider discussing the matter with those charged with governance and others within the firm.
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