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Per Code of Ethics, a "self-review threat" arises when:
AA non-audit service produces output that becomes part of the FS subject to the same firm's audit
BAuditor is hungry
CAuditor reads marketing material
DAuditor attends client dinners
Answer & Solution
Correct answer: B. Auditor is hungry
1. Self-review threat: same firm reviews its own work (e.g. tax computation reviewed by audit team).
2. Code lists 5 threats: self-interest, self-review, advocacy, familiarity, intimidation.
3. Safeguards or refusal of one service required.
_Source: ICAI BoS CA Final Paper 3, Ch 6 "Standards on Auditing and Professional Ethics"_
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