QUESTION 3For each situation below identify the threat and one fundamental principle that is comprised.a) An auditor has shares in a company which is an audit client of theirs.b) An accountant has compiled the financial statements for a client and was requested to also audit the statements.c) The financial director of Baboo Ltd is very aggressive and dismissive of the audit function and audit teamd) A chartered accountant values a client's shares and then leads the negotiations on the sale of the client's companye) The chartered accountant fails to report a fraud at a client because the perpetrator is a close friend and he issympathetic to the interest of his friend.

There are 5 type of threats in respect of auditing 1_ Self interest threat This arise when auditor…

or each situation below identify the threat and one fundamental principle that is comprised. a) An auditor has shares in a company which is an audit client of theirs. b) An accountant has compiled the financial statements for a client and was requested to also audit the statements. c) The financial director of Babo0 Ltd is very aggressive and dismissive of the audit function and audit team d) A chartered accountant values a client's shares and then leads the negotiations on the sale of the client's company e) The chartered accountant fails to report a fraud at a client because the perpetrator is a close friend and he is sympathetic to the interest of his friend.

or each situation below identify the threat and one fundamental principle that is comprised. a) An auditor has shares in a company which is an audit client of theirs. b) An accountant has compiled the financial statements for a client and was requested to also audit the statements. c) The financial director of Babo0 Ltd is very aggressive and dismissive of the audit function and audit team d) A chartered accountant values a client's shares and then leads the negotiations on the sale of the client's company e) The chartered accountant fails to report a fraud at a client because the perpetrator is a close friend and he is sympathetic to the interest of his friend.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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