ACCT3000 Auditing

Write answers to each of the five (5) situations described below addressing the required criteria (i.e. 1 & 2) in each independent case. You may use a tabulated format if helpful having Threats, Safeguards and Objective Assessment as column headings. Tom Hardy has been appointed as a junior auditor of Awesome Chartered Accountants (ACA). One of his first tasks is to review the firms audit clients to ensure that independence requirements of APES 110 (Code of Ethics for Professional Accountants) are being met. His review has revealed the following:

(e) Bradley Cooper, an audit senior with ACA is very excited to be a part of the audit team of Massive Metal Ltd. (MM). Bradley feels that he will be a valuable asset to the audit team, as his dad is MMs financial controller who is responsible for the preparation of MMs financial report. Both Bradley and his dad are financially independent.

For each of the independent situations above, and using the conceptual framework in APES 110 (Code of Ethics for Professional Accountants), answer the following questions: 1. Identify potential threat(s) to independence & recommend safeguards (if any) to reduce the independence threat(s) identified. (5 marks) 2. Provide an objective assessment of whether audit independence can be achieved (5 marks) (Total 10 Marks)