The correct answers are: The audit partner is married to the finance director of an audit client; A senior member of the audit team is in a relationship with the financial controller of an audit client; The financial controller of a company resigned from the company three months ago, is now working for the company's auditors and is working on the audit of the company she previously worked for.

The ACCA's Code of Ethics and Conduct sets out that objectivity is threatened or may appear to be threatened as a consequence of a family or other close personal or business relationship. The threat is greater if the individuals concerned are in senior positions at the client or the audit firm. The threat is less where the individuals concerned are not directly involved in the audit or the financial function. If, during the period to be covered by the audit report, a member of staff has been a director, officer or an employee with significant influence over the accounting records/financial statements, then he/she should not be assigned to the audit team. Normal social relationships between audit partners and their clients (such as attending the annual dinner) do not necessarily constitute a threat to objectivity.