What Is Familiarity Risk
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...
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.
How do you solve familiarity threats?
- Changing the role of the senior personnel on the attest engagement team or the nature and extent of the tasks the senior personnel perform.
- Having a professional accountant who was not included on the attest engagement team review the work of the senior personnel.
What is a self-interest threat?
Section 200.8 A6 describes self-interest threat as: “The threat that a member could benefit, financially or otherwise, from an interest in, or relationship with, the employing organisation or persons associated with the employing organisation. … This would help to safeguard against the threat.
Sarah Jenkins is a veteran tech journalist with over 12 years of experience covering artificial intelligence, mobile innovations, and digital ethics. Her insights have appeared in leading technology publications worldwide.
