Economics · Auditing and Ethics
According to professional ethics for auditors, when the total fees generated from a public interest entity audit client represent a significant proportion of the firm's total fees, a self-interest threat is created. Which of the following is an adequate safeguard against this threat when fees consistently exceed 15%?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Disclosure to the firm's ethics partner that fees represent more than 15% of the total fee income
- 2An independent pre-issuance review equivalent to an engagement quality review✓
- 3Using professionals who are not audit team members to perform the non-audit services
- 4A post-issuance review conducted solely by the existing engagement partner
Correct answer
An independent pre-issuance review equivalent to an engagement quality review
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