Reference no: EM132622859

Problem 1: Threats to auditor independence can come from various sources. Which of these is referred to in the Code of Ethics as a self-interest threat?

I. A loan from an officer of an assurance client to the auditor.

II. Undue dependence of the audit firm on total fees from an assurance client.

III. Long association of a senior member of an assurance team with the assurance client.

Select one:

Option 1: I and II.

Option 2: I, II and III.

Option 3: Only III.

Option 4: II and III.