1.Refer to the disclosures explaining the amounts paid to the auditor. Calculate the ratio of audit fees over revenue and the proportion of non-audit services relative to audit fees in 2019. Show how you arrive your answers. Explain what are the implications of these figures with respect to audit independence and professional ethical principles?

2.Which two types of non-audit services would you advise the auditor to avoid providing to the company? Explain your answer with reference to the Code of Ethics for Professional Accountants.

Profit & Loss Statement (?) Balance Date 31-Dec-2019 31-Dec-2018 31-Dec-2017 31-Dec-2016 31-Dec-2015 Reported Currency AUD AUD AUD AUD AUD Currency Units AUDOOO AUDOOO AUDOOO AUDOOO AUDOOO Revenue Items Sales Revenue 2,616,400 2,635,100 2,469,600 2,520,700 2,867,800 Other Revenue 140,600 1,104,400 3,066,300 1,582,000 1,588,400 Total Revenue 2,757,000 3,739,500 5,535,900 4,102,700 4,456,200 Cost of Goods Sold n/a n/a n/ a n/a n/ a Depreciation n/a n/ a n/a n/a n/a R&D Expenditure n/a n/a n/a n/a n/a Interest Interest Received 4,600 3,100 3,200 7,200 7,900 Interest Expenses 39,000 37,900 37,200 65,200 83,700 Profit & Loss Share of Profits of Associates 119,900 234,900 306,200 231,700 211,900 EBITDA 7/a n/a n/a n/a n/a Income Tax Expense 56,900 46,300 55,700 29,600 29,500 Continuing Operations After Tax 1,187,600 2,295,900 4,231,400 3,021,500 2,729,700 Discontinued Operations After Tax n/a n/a n/a n/a n/a Outside Equity Interest 8,100 8,700 13,500 31,000 21,900 Significant Items -89,900 1,013,000 2,982,200 1,818,100 1,555,900 Dividends 1,187,100 1,165, 100 1,142,500 1,120,800 1,096,900 Profit Before Tax 1,244,500 2,342,200 4,287,100 3,051,100 2,759,200 NPAT 1,179,500 2,287,200 4,217,900 2,990,500 2,707,800 Audit Audit Fees 3,074 2,814 3,323 2,806 2,844 Audit Other 1,266 1,331 940 1,425 1,362 Total Audit Fees 4,340 4,145 4,263 4,231 4,206