Priyanka Bansalpriyanka bansal asked 2 years ago
1 Answers
RaviRavi Staff answered 2 years ago

These threats are part of IPCC ethics and communications. Not covered in ca final module. You can remember them by following shortcut 
FASSI is threat for criminals.
F- Familiarity Threat — if auditor is doing audit for long time he developed close personal relationship and it may become difficult for him to give honest report because he is close to client.
A- Advocacy Threat — If ca firm is helping company to get higher valuations of its shares and at the same time they are auditors , it will become difficult for them for them to go against company.
S- Self Interest , if auditor has personal financial interest in entity in the form loan , deposit or any other investment he may not go against company 
S-Self Review , he may have done previous audits and other assignments, and he may not disclose misstatements fearing action on his negligence earlier 
I – intimidation , auditor may be threatned by removal from audit and other assignments or legal case if he discloses anything in his report 
These are threats which may stop professionals from complying with there duty.

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