- 4 Marks
AA – Nov 2021 – L2 – Q3c – Professional and Ethical Considerations
Discusses threats to audit independence due to personal relationships and financial incentives during audit engagements and suggests safeguards.
Question
Kom & Associates, an audit firm, has regularly been auditing Ake Ltd. At the beginning of the current financial year, the wife of Koffie, the engagement partner of Kom & Associates, was appointed the personal assistant to the Chief Executive of Ake Ltd. In the course of the fieldwork, the audit team was given lunch and money for transport by Ake Ltd.
Required:
Discuss the threats and safeguards for the audit.
Find Related Questions by Tags, levels, etc.
- Tags: Ethical Threats, Financial Incentives, Independence, Personal Relationships, Safeguards
- Level: Level 2
- Topic: Professional and Ethical Considerations
- Series: NOV 2021
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