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Essay text:
They are self-interest threats, self-review threats and familiarity threats.
Self-interest threats:
Section 200.4 of the APES 110 states that a self-interest threat is created when “concern about the possibility of losing a client, or having a close relationship with a client”. That is, where the relationship between client and auditor firm does affect the independence of the auditor.
In BTI case, the auditor firm AWC and Angela Mets have to face this threats. There are two issues worried Angela. On one hand, the BTI Company is the main client for AWC in Toowoomba. Meanwhile, in early 2005, AWC have a plan to set an office in Toowoomba...
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