What is the undue influence threat?
The undue influence threat is the threat that a member will subordinate his or her judgment to an individual associated with a client or any relevant third party due to that individual’s reputation or expertise, aggressive or dominant personality, or attempts to coerce or exercise excessive influence over the member.
Examples of undue influence threats include the following:
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What are some examples of the familiarity threat?
The familiarity threat is the threat that, due to a long or close relationship with a client, a member will become too sympathetic to the client’s interests or too accepting of the client’s work or product. Examples of familiarity threats include the following:
What is the self-interest threat?
The self-interest threat is the threat that a member could benefit, financially or otherwise, from an interest in, or relationship with, a client or persons associated with the client. Examples of self-interest threats include the following:
What is the management participation threat?
The management participation threat is the threat that a member will take on the role of client management or otherwise assume management responsibilities, such may occur during an engagement to provide non-attest (non-audit) services. A CPA should never act on behalf of management!