Familiarity threat occurs when auditors become too comfortable with their clients, potentially compromising their objectivity and professional skepticism. This can lead to biased judgments and decisions, undermining the integrity of the audit process.

Familiarity Threat

Familiarity threat

auditors

clients

Objectivity refers to the practice of maintaining impartiality and neutrality in analysis, judgment, and reporting, free from personal biases, emotions, or external influences. It is crucial for ensuring credibility and reliability in fields like journalism, science, and law, where unbiased information is essential for informed decision-making.

objectivity

Professional skepticism is an attitude that includes a questioning mind and a critical assessment of evidence, essential for auditors and professionals to detect and prevent errors and fraud. It involves being alert to conditions that may indicate possible misstatement due to error or fraud, and a critical assessment of audit evidence.

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