A. Manisha Rossila & Co is the auditor for Bentara Bhd, an automotive manufacturing company. The firm is also the auditor for Kijang Sdn Bhd that had a contract with Bentara Bhd to supply automotive parts. The following are the ethical issues that arise during the annual audit: i. Rossila, who is the audit partner for Bentara Bhd is also acting as the audit partner for Kijang Sdn Bhd. Bentara Bhd has just initiate a proposal to renew its procumbent contract with Kijang Sdn Bhd for the next five years. Kijang Sdn Bhd has asked Rossila to provide advice on the matter. ii. Arman who is the son of Rossila had just graduated in Bachelor of Mechanical Engineering and is offered a position as an engineer at Bentara Bhd. Arman is considering the offer, as Bentara Bhd offerred a starting salary which is higher than the industry average. iii. An audit manager who is responsible for the audit engagement for Bentara Bhd holds 1,000 units ordinary shares in the company which amounted to less than 1% of the total shares issued. Rossila just get to know about this matter after the engagement has started. However, she emphasised that she herself does not hold any shares in Bentara Bhd. iv. Due to financial difficulties, Kijang Sdn Bhd had not paid their audit fees for the past three (3) years. To, overcome the unpaid audit fees, Kijang Sdn Bhd offered to supply Manisha Rossila & Co with new office furniture. The partner had accepted this offer in full consideration of the outstanding fees, even though the furniture was only worth 70% of the outstanding fees. Required: Comment on each of the ethical issues above in the context of independence requirement as stated in the MIAs By-Laws (On Professional Ethics, Conduct and Practice). (8 Marks)

A. Manisha Rossila & Co is the auditor for Bentara Bhd, an automotive manufacturing company. The firm is also the auditor for Kijang Sdn Bhd that had a contract with Bentara Bhd to supply automotive parts. The following are the ethical issues that arise during the annual audit: Rossila, who is the audit partner for Bentara Bhd is also acting as the audit partner for Kijang Sdn Bhd. Bentara Bhd has just initiate a proposal to renew its procument contract with Kijang Sdn Bhd for the next five years. Kijang Sdn Bhd has asked Rossila to provide advice on the matter ii. Arman who is the son of Rossila had just graduated in Bachelor of Mechanical Engineering and is offered a position as an engineer at Bentara Bhd. Arman is considering the offer, as Bentara Bhd offerred a starting salary which is higher than the industry average. An audithanager who is responsible for the audit engagement for Bentara Bhd holds 1,000 units ordinary shares in the company which amounted to less than 1% of the total shares issued. Rossila just get to know about this matter after the engagement has started. However, she emphasised that she herself does not hold any shares in Bentara Bhd. iv. Due to financial difficulties, Kijang Sdn Bhd had not paid their audit fees for the past three (3) years. To, overcome the unpaid audit fees, Kijang Sdn Bhd offered to supply Manisha Rossila & Co with new office furniture. The partner had accepted this offer in full consideration of the outstanding fees, even though the furniture was only worth 70% of the outstanding fees. Required: Comment on each of the ethical issues above in the context of independence requirement as stated in the MIA's By-Laws (On Professional Ethics, Conduct and Practice). (8 Marks) Delcarcator Coaners in the balancinar faci ction from brachidere A. Manisha Rossila & Co is the auditor for Bentara Bhd, an automotive manufacturing company. The firm is also the auditor for Kijang Sdn Bhd that had a contract with Bentara Bhd to supply automotive parts. The following are the ethical issues that arise during the annual audit: Rossila, who is the audit partner for Bentara Bhd is also acting as the audit partner for Kijang Sdn Bhd. Bentara Bhd has just initiate a proposal to renew its procument contract with Kijang Sdn Bhd for the next five years. Kijang Sdn Bhd has asked Rossila to provide advice on the matter ii. Arman who is the son of Rossila had just graduated in Bachelor of Mechanical Engineering and is offered a position as an engineer at Bentara Bhd. Arman is considering the offer, as Bentara Bhd offerred a starting salary which is higher than the industry average. An audithanager who is responsible for the audit engagement for Bentara Bhd holds 1,000 units ordinary shares in the company which amounted to less than 1% of the total shares issued. Rossila just get to know about this matter after the engagement has started. However, she emphasised that she herself does not hold any shares in Bentara Bhd. iv. Due to financial difficulties, Kijang Sdn Bhd had not paid their audit fees for the past three (3) years. To, overcome the unpaid audit fees, Kijang Sdn Bhd offered to supply Manisha Rossila & Co with new office furniture. The partner had accepted this offer in full consideration of the outstanding fees, even though the furniture was only worth 70% of the outstanding fees. Required: Comment on each of the ethical issues above in the context of independence requirement as stated in the MIA's By-Laws (On Professional Ethics, Conduct and Practice). (8 Marks) Delcarcator Coaners in the balancinar faci ction from brachidere