GAGAS Threats to Independence

Question 1

threat that a financial or other interest will inappropriately influence an auditor’s judgment or behavior

Answer 1

self-interest threat

Question 2

threat when an auditor or audit firm has previously provided non-audit services and might not fairly assess their own past work while making important decisions for an audit

Answer 2

self-review threat

Question 3

threat that an auditor will, as a result of political, idealogical, social, or other convictions, take a position that is not objective

Answer 3

bias threat

Question 4

threat that aspects of a relationship with management or personnel of an audited entity (close or long relationship or that of an immediate or close family member) will lead an auditor to take a position that is not objective

Answer 4

familiarity threat

Question 5

threat that external influences or pressures will impact an auditor’s ability to make independent & objective judgements

Answer 5

undue influence threat

Question 6

threat that results from an auditor’s taking on the role of management or otherwise performing management functions on behalf of the entity undergoing an audit

Answer 6

management participation threat

Question 7

threat that an audit organization’s placement within a government entity, in combination with the structure of the government entity being audited, will impact the audit organization’s ability to perform work & report results objectively

Answer 7

structural threats