An audit partner owns a significant number of shares in the audit client. Which threat to independence does this create?

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Multiple choice — select the best answer

AFamiliarity threat
BSelf-interest threat
CAdvocacy threat
DIntimidation threat

✓ Correct answer: B. Self-interest threat Owning shares in an audit client creates a self-interest threat because the auditor has a financial stake in the client's performance, which could impair independence and objectivity.

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An audit partner owns a significant number of shares in the audit client. Which threat to independence does this create?

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