问题详情

(a)StatetheFIVEthreatscontainedwithinACCA’sCodeofEthicsandConductandforeachthreatlistONEexampleofacircumstancethatmaycreatethethreat.(5marks)
(b)YouaretheauditmanagerofJones&CoandyouareplanningtheauditofLVFonesCo,whichhasbeenanauditclientforfouryearsandspecialisesinmanufacturingluxurymobilephones.
Duringtheplanningstageoftheaudityouhaveobtainedthefollowinginformation.TheemployeesofLVFonesCoareentitledtopurchasemobilephonesatadiscountof10%.Theauditteamhasinpreviousyearsbeenofferedthesamelevelofstaffdiscount.
DuringtheyearthefinancialcontrollerofLVFoneswasillandhenceunabletowork.ThecompanyhadnosparestaffabletofulfiltheroleandhenceaqualifiedauditseniorofJones&Cowassecondedtotheclientforthreemonths.Theauditpartnerhasrecommendedthattheauditseniorworkontheauditashehasgoodknowledgeoftheclient.ThefeeincomederivedfromLVFoneswasboostedbythisengagementandalongwiththeauditandtaxfee,nowaccountsfor16%ofthefirm’stotalfees.
Fromareviewofthecorrespondencefilesyounotethatthepartnerandthefinancedirectorhaveknowneachothersociallyformanyyearsandinfactwentonholidaytogetherlastsummerwiththeirfamilies.Asaresultofthisfriendshipthepartnerhasnotyetspokentotheclientaboutthefeeforlastyear’saudit,20%ofwhichisstilloutstanding.
Required:
(i)ExplaintheethicalthreatswhichmayaffecttheindependenceofJones&Co’sauditofLVFonesCo;and(5marks)
(ii)Foreachthreatexplainhowitmightbeavoided.(5marks)
(c)Describethestepsanauditfirmshouldperform.priortoacceptinganewauditengagement.(5marks)
请帮忙给出正确答案和分析，谢谢！