If a member of the assurance team, or their
immediate family member receives, by way
of, for example, an inheritance, gift or, as a
result of a merger, a direct financial interest
or a material indirect financial interest in the
assurance client, a self-interest threat would
be created. The following safeguards should
be applied to eliminate the threat or reduce
it to an acceptable level:
a. Disposing of the financial interest at the
earliest practical date.
b. Removing the member of the assurance
team from the assurance engagement.
c. Either a or b
d. Neither a nor b
immediate family member receives, by way
of, for example, an inheritance, gift or, as a
result of a merger, a direct financial interest
or a material indirect financial interest in the
assurance client, a self-interest threat would
be created. The following safeguards should
be applied to eliminate the threat or reduce
it to an acceptable level:
a. Disposing of the financial interest at the
earliest practical date.
b. Removing the member of the assurance
team from the assurance engagement.
c. Either a or b
d. Neither a nor b