ldentify the correct statements regarding threats to indepen

ldentify the correct statement(s) regarding threats to independence: I. The management participation threat involves a risk of the auditor essentially reviewing the reports indicating the results of decisions that the auditor participated in when serving in an attest client management role. Il. The advocacy threat involves an appearance of preferentially serving the audit firm and its interests over the interests of the client and the investing public. II. The AICPA requires audit partner rotation every three years as a safeguard to independence. O Ionly O Il and Ill only O Il only O I, II, and IllI

Solution

The correct answer is Option A i.e. I only

The correct statement is the management participation threats involves a risk of the auditor essentially reviewing the reports indicating the results of decisions that the auditor participated in when serving in an attest client management role.