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show clearly threats and safeguards:
1.the audit senior in charge of the audit of Quaky, a bank.has a personal loan from the Quaky Bank of $2000 on which he is currently paying a market rate of interestthere is no threat. he is paying a market rate interest. if he is getting special priviledge just because he is the auditor of bank then there is a threat. but in this case, no threat.
the other question also need show threat and safeguard,question as below:
1.the audit manager in charge of the audit assignment of GOO holds 1000 $1 ordinary shares in the company (total shares in issue-100000). The audit partner holds no shares.
2. An audit partner of a firm of Certificated Accountants is a personal friend of the chief accountant of SCHOME.The chief accountant is not a director of the company and the partner is not responsible for the audit SCHOME.
3.The audit fee receivable from HIKS, a listed company, is $100000. The total fees income of the audit firm is &700000.
4. An audit partner is responsible for two audit assignments :LON and VIL. LON has recently tendered for a contract with VIL for a supply of material quantities of goods over a number of years. VIL has asked the audit partner to advise on the matter.
@kemi1234 – welcome to our forums – which are for questions and answers rather than such short comments – if you have a question please post it to the most suitable forum – here if you want a student’s response or the tutor forum for a tutor response https://opentuition.com/forum/ask-acca-tutor-forums/ask-the-tutor-acca-audit-and-assurance-aa-exams
I note that you are commenting on a very old post from 2012. As standards (auditing, financial reporting and ethical) are changing all the time, it is quite possible that such old posts may be technically out-of-date, so you shouldn’t rely on them.
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