Which of the following indicates a potential conflict of interest in an audit?

A long association with a client can indicate a potential conflict of interest in an audit for several reasons. Over time, auditors may develop close relationships with a client's management, which can lead to biases in judgment, either consciously or unconsciously. This familiarity might impair the auditor's objectivity and independence, potentially affecting the integrity of the audit process.

Continuous association may result in auditors becoming too reliant on management for information, making them less likely to challenge or verify those assertions thoroughly. Additionally, long-standing relationships may create an impression of advocacy rather than an objective assessment, clouding the auditor's professional skepticism.

In contrast, receiving payment only for audit services maintains a clear boundary regarding compensation sources, thereby reducing potential conflicts. Frequent partner rotation is a strategy used to maintain independence, while using standardized audit procedures promotes consistency and standardization in the approach, neither of which inherently suggests a conflict of interest.