Which factor can require modifications in an audit program?

The need for modifications in an audit program can arise from a conflict of interest situation when conducting an audit. A conflict of interest can compromise the objectivity and impartiality necessary for an effective audit process. When auditors have a vested interest in the outcome of the audit or know people who do, they may not be able to assess the information or activities without bias.

In such cases, it may be necessary to adjust the audit program by either changing personnel, revising the scope of the audit, or implementing additional safeguards to maintain the integrity of the audit process. Addressing conflicts of interest not only preserves the credibility of the audit but also instills confidence in stakeholders that the audit conclusions will be based on unbiased, accurate information.

The other options, while they may influence certain aspects of an audit, do not inherently require program modifications in the same critical way as a conflict of interest. For example, manager's requirements or audit efficiency may suggest improvements, but they don't necessarily impede the credibility of the audit process itself. Similarly, requiring the audit client’s specific demands can inform adjustments to the audit plans but doesn’t automatically imply a compromise of independence or objectivity that would necessitate a modification.