189 minutes remaining OF S QUESTIONS REMAINING Grading Question 1 10 Points Addition Suggested time allocation: 30 minutes Refracts you aut Sophie, a senior technical manager at Darwin Chartered Accountants (Derwin) is reviewing the firm's independence for some of its audit clients, She identified the following: 1. Darwin seconded Herbert, a senior auditor to Chair Lid where he assisted in the preparation of financial statements. Herbert is part of the audit team of Chair itd. 2. James, a partner of Darwin resigned and joined one of Darwin's biggest clients. Jablefty Lid, as a Director. where he is in a position to exert s grillicant influence over the preparation of Table's accounting records and financial statements. 3. In providing tax services to Stool Lite. Darwin performed a valuation to assist it with its reporting obligations and for tax purposes only. The result of the valuation did not have a direct effect on the financial statements 4. Darwin provided IT systems services to Armchair Pty Led, and these related to the design and implementation of IT systems that were unrelated to internal central over financial reporting. 5. Darwin acted as an expert witness, calculating estimated damages that became payable as a result of litigation for one of its main clients. Sofa Pry Lid REQUIRED =) Identity and explain the importance of the five fundamental pringples of the Code of Ethics for Professional Accountants. (5 marks) bj what threat to independence does Chief the biggest is Damp Chartered Accountants if any? justity your answer. (5 mark=)