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You are the auditor partner for the AAA audit firm, tendering for the audit of Howard Ltd for the 2019 financial year. During your review of an Australian Securities and Investments Commission (ASIC) company extract for your client Howard Ltd, you note that AAA audit firm holds an interest in Howard Ltd. The interest is material to AAA audit firm.Required:1. What is the threat to compliance with the fundamental principles?2. Explain whether any safeguards could be put in place to reduce the threat to compliance with the fundamental principles,

You are the auditor partner for the AAA audit firm, tendering for the audit of Howard Ltd for the 2019 financial year. During your review of an Australian Securities and Investments Commission (ASIC) company extract for your client Howard Ltd, you note that AAA audit firm holds an interest in Howard Ltd. The interest is material to AAA audit firm.Required:1. What is the threat to compliance with the fundamental principles?2. Explain whether any safeguards could be put in place to reduce the threat to compliance with the fundamental principles,

FINANCIAL ACCOUNTING
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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You are the auditor partner for the AAA audit firm, tendering for the audit of Howard Ltd for the 2019 financial year. During your review of an Australian Securities and Investments Commission (ASIC) company extract for your client Howard Ltd, you note that AAA audit firm holds an interest in Howard Ltd. The interest is material to AAA audit firm.
Required:
1. What is the threat to compliance with the fundamental principles?
2. Explain whether any safeguards could be put in place to reduce the threat to compliance with the fundamental principles,

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