If a family member of an audit team member is in a position to influence the audit client, what must happen?

In situations where a family member of an audit team member holds a position that could influence the audit client, it is crucial to uphold the principles of independence and objectivity in the audit process. Having a family member in such a position creates a potential conflict of interest, which can compromise the audit team's integrity and impartiality.

To maintain the necessary level of independence, the most appropriate action is to remove the audit team member from the engagement. This removal eliminates any potential bias or undue influence that could arise from the familial relationship, ensuring that the audit remains credible and trustworthy.

Preserving the independence of the audit team is essential for stakeholders who rely on the audit's findings. This obligation aligns with professional standards and ethical requirements in auditing, which emphasize the importance of avoiding any circumstances that could undermine the auditor's objectivity.

In contrast, the other options do not adequately address the fundamental issue of independence. Resignation of the family member may not resolve the conflict, delaying the audit may not address the risks, and consulting with client management does not resolve the potential for biased judgments made by the audit team member. Therefore, the decisive action is to remove the audit team member from the engagement to ensure the audit's integrity.