If a firm, or a network firm, has a direct
financial interest in an audit client of the
firm, the self-interest threat created would
be so significant no safeguard could reduce
the threat to an acceptable level. The
action appropriate to permit the firm to
perform the engagement would be to
a. Dispose of the financial interest.
b. Dispose of a sufficient amount of it so
that the remaining interest is no longer
material.
c. Either a or b
d. Neither a nor b
financial interest in an audit client of the
firm, the self-interest threat created would
be so significant no safeguard could reduce
the threat to an acceptable level. The
action appropriate to permit the firm to
perform the engagement would be to
a. Dispose of the financial interest.
b. Dispose of a sufficient amount of it so
that the remaining interest is no longer
material.
c. Either a or b
d. Neither a nor b