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Familiarity threats to independence

Auditing

Former partner of audit firm being a director or senior employee of the client , is an example of familiarity threats. But till how much time 1, 2 etc years the audit firm cannot do audit of the client ?

Anirved Rahatgaonkar

CA Inter

★ 0

08-Feb-24 10:17

110

Answers (1)

This is applying safeguards to eliminate the threat, Min 2 years. However, if by any change there is compromise on objectivity, then we consider threat to still exist and dont accept the engagement.