TK Associates a chartered accountant firm has been appointed as an auditor of the company for the financial year 2023-24. It consists of two…
CA Final · Advanced Auditing, Assurance and Professional Ethics · MTP · November 2024
TK Associates a chartered accountant firm has been appointed as an auditor of the company for the financial year 2023-24. It consists of two partners CA T & CA K. CA T is brother of the father of the finance director of the company BAC Ltd. CA K is an old friend of the finance director of the company BAC Ltd. What kind of ethical threat is associated with appointment of TK Associates as an auditor of BAC Ltd.?
Suggested Answer and Working Notes:
Correct Answer: Option (C)
Familiarity Threat.
Topics: Professional Ethics & Liabilities of Auditors
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