Economics · Auditing and Ethics

An audit firm is assisting a client with the implementation of a new financial IT system. Consider whether the following statements regarding threats and safeguards are True or False: 1. A familiarity threat arises as the new systems will produce data used directly in financial statements. 2. There is a risk of assuming management responsibility if the auditor makes operational decisions. 3. A self-review threat arises because the auditor will later test controls and data generated by this system. 4. Using a separate non-audit team eliminates all threats, removing the need for independent review. Which of the following correctly identifies the True/False status of these statements?