Intimidation

1. Threats

1.1. Close business relationships

1.2. Family and personal relationship

1.3. Ligitation

1.4. Assurance staff members move to employment with client

1.5. Firm is faced with the risk of losing the client, bad publicity and the possibility that they will be found to have been negligent

2. Safeguards

2.1. Disclose to audit committee the nature & extent of the ligitation

2.2. Remove specific affected individuals from audit team

2.3. Involve and additional professional accountant on the team to review work

2.4. Serious ligitation: Resign