(a). Talal Al Harthy, CPA, does the bookkeeping, prepares the tax returns, and performs

various management services for Sayyid Company, but does not do the audit. One

management service involved the assessment of the computer needs and the

identification of equipment to meet those needs. Talal recommended a product sold

by Computer Company, which has agreed to pay Talal a 10% commission if Sayyid

Company buys its product. 2

(b). Basam Al Farsi, CPA, has served Hassan Company as auditor for several years. In

addition, Basam has performed other services for the company. This year, the

financial vice president has asked Basam to perform a major computer system

evaluation.

(c). Due to the death of its controller, an audit client had its external auditor, Ghazi Al

Amri, CPA, perform the controllers job for a month until a replacement was found.

REQUIRED

Identify the threats to independence in the situations described above and suggest how the

firm might deal with them.