Final answer:
Threats to independence according to the IFAC Code of Ethics for Professional Accountants include Self-interest, Advocacy, and Intimidation, but The audit relationship is not a threat itself; it is the context that may give rise to these threats. The correct option is C.
Step-by-step explanation:
Threats to independence in the context of the IFAC Code of Ethics for Professional Accountants are conditions, relationships, or circumstances that could impair the ability of an accountant to make objective professional and business judgments.
These threats include: Self-interest,which occurs when a financial or other interest might influence, or could be perceived to influence, an accountant's judgment or behavior; Advocacy, which happens when an accountant promotes a position or opinion to the point that subsequent objectivity may be compromised; and Intimidation, which is when an accountant feels deterred from acting objectively due to actual or perceived pressures, including attempts to exercise undue influence over the accountant.
The option The audit relationship is not a threat to independence mentioned in the IFAC Code of Ethics. Instead, it is the context in which these threats may occur. The audit relationship itself is not considered a threat, but certain aspects of that relationship could give rise to the threats identified.