Threats and management

1. Non audit service providence

According to international standards of audit , no audit firm is allowed to

do any other services to clients, mainly for listed companies. It may be
reduced for non listed company by providing other team for audit and other
services separate.The audit engagement must be cancelled.

2. Gift and hospitality

The truckers co has been provided for whiling by o&b . THis will make a
threat that the gift may lead to certain agreements between them.

3. Social relationship between auditor and the finance director

This relationship may lead to familiarity threat and this can be managed
by review by an independent senior manager. Or by resignation of
engagement .

4. Preparation of tender

This will lead to self review threat. And this can be managed by appointing
separate team for preparation and audit,also by review of an independent
senior manager.

5. Overdue fee

The overdue fee may bring another threat to leave the mistatements as it
is because they may be not get paid. The audit can be done only by the
payment of the overdue fee or by neccesarry steps to payment.