[30 MARKS] QUESTION 1 The following scenarios may result in non-compliance with one or more of the principles in the code of ethics, by the auditor or accountants. (4 marks) (a) Alicia is the registered auditor in charge of the audit of Dragon Light (Pty) Ltd, she charged the client a fee for audit procedures which she knew had not actually been carried out (5 marks) (b) Peter Brandt, a registered auditor, arranged with some of his clients to pay the fees which he charged for his services in cash. Any client agreeing to do so was not charged VAT and was given a substantial discount. (6 marks) (c) John, a chartered accountant who is employed by a state-owned enterprise, appeared before a commission of enquiry into financial irregularities that occurred under his direction. John denied his involvement but there was proof made available which indicated he was lying. John acknowledged that he had lied and then went on to state that he was instructed to do so by his superiors. (5 marks) (d) Bongani attended and gave a speech at a private dinner for Lisa's birthday who is the financial director of a company that is a major client of the audit firm that Bongani works at. Bongani is in charge of the audit that is being performed at Lisa's company and they have been close friends for almost five years. (5 marks) (e) Thomas is a registered auditor who is in charge of several audits at the audit firm in which he is employed. Thomas is very hardworking and competent. He, however, refuses to have any female members on his audit team as he believes that male team members are more professional and competent as compared to female team members. (5 marks) (f) The financial director of Thulani Ltd, a juice company, has made an offer to the audit team to take them on a weekend trip to a safari with all expenses paid for, which will become an event that occurs on a yearly basis should all audit deadlines be met annually. Required: Discuss if the chartered accountants or registered auditors in each of the scenarios above, have failed to comply with any of the fundamental ethical principles in the code of conduct