ACCA SBL Syllabus F. Organisational Control And Audit - Nature and sources of risks to auditor independence - Notes ^{3 / 8}

There are various resources of risks associated with auditor independence.

The risks are that independence will be compromised by self-interest, self-review, being in an advocacy position, over-familiarity, or intimidation.

Actual threats need to be considered, and so do situations that might be perceived as threats.

These threats are risks to the auditor.

Such as being over familiar with the client and thus losing some professional scepticism or having a financial interest in the company doing well and thus losing your independence

Auditor capture can be seen as the problem of auditors becoming too closely dependent / influenced / sympathetic / empathetic to the client’s needs and thus losing their independent attitude of mind and hence their professional scepticism