[单选题]5 The audit partner has told you that the independence threats arising from YHT & Co performing the review engagement should be monitored carefully.
Which of the following is likely to cause the audit partner most concern?

According to the ACCA Code of Ethics and Conduct, YHT & Co is prohibited from providing other assurance services to an audit client.

The review engagement is likely to give rise to a self-review threat, as the outcomes of the review could form the basis of the financial statements which the audit team will audit.

The lucrative nature of the review engagement may make the external audit team less inclined to require management to make adjustments or to issue a modified audit opinion, for fear of losing the review engagement.

If the new review engagement causes YHT & Co's fee income from BJM to exceed 15% of the firm's total fees, the ACCA Code of Ethics and Conduct states that the new engagement must be turned down.

5 C The fees from the review engagement are likely to be very lucrative, so there is a risk that YHT & Co will not seek adjustments during the external audit process for fear of upsetting the Board of BJM and losing the review engagement work.

The provision of non-audit services to unlisted audit clients is not specifically prohibited. While YHT & Co should be alert to self-review threats, in this case it seems unlikely: the scenario states that the review engagement does not include the provision of accounting advice or the preparation of figures in the financial statements. A firm is not required to turn down work when a 15% limit is exceeded.

Where fee income from a listed audit client is expected to exceed 15% of the audit firm's total fee

revenue, this fact should be disclosed to those charged with governance and a separate review may be required (ACCA Code of Ethics and Conduct: para. 290.217). However, the 15% fee cap is not a major concern to YHT in this instance because BJM is unlisted.

[单选题]5 The audit partner has told you that the independence threats arising from YHT & Co performing the review engagement should be monitored carefully.Which of the following is likely to cause the audit partner most concern?

[单选题]5 The audit partner has told you that the independence threats arising from YHT & Co performing the review engagement should be monitored carefully.
Which of the following is likely to cause the audit partner most concern?