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ACCTSOOO CASE STUDY 1 SEMESTER. 1 , 2019Write answers to each of the five ( 5 ) situations described below addressing the required criteria( i.e

image text in transcribed ACCTSOOO CASE STUDY 1 SEMESTER. 1 , 2019Write answers to each of the five ( 5 ) situations described below addressing the required criteria( i.e . I & 2 ) in each independent case . You may use a tabulated format if helpful having " Threats " ," Safeguards " and " Objective Assessment " as column headings*Stephen Taylor has been appointed as a junior auditor of Simnett Chartered Accountants ( SCA ) .One of his first tasks is to review the firm's audit clients to ensure that independence requirementsof APES 1 10 ( Code of Ethics for Professional Accountants ) are being met . His review has revealedthe following :( a ) SCA has been providing it's audit client Kaplan Limited ( Kaplan ) with non- auditservices for a number of years . Andrew Ferguson is SCA's partner in charge forproviding non- audit services to Kaplan . While having a conversation with Andrew ,Stephen becomes aware that Andrew's wife Michelle Ferguson is planning topurchase a significant number of shares in Kaplan .*( b ) Duxton Motels Limited ( DML ) is a chain of ten motels operating in Western Australiaand is one of the oldest companies listed on the Australian Securities Exchange . SCAperforms audit work for DML . This is the second year that SCA's total fee from DMLwill comprise of around 20 % of SCA's total fee revenue from all clients .( C ) Super Tech Limited ( S'TL ) , an Australian IT company , has not paid any of its audit feesfor the last three years to SCA , citing cash flow problems . This has resulted in a significantamount of overdue audit fees for SCA . The audit partner in charge , Grant Richardson hasbeen reluctant to push the issue further , as STL is a high profile client who he wishes toretain .( d) Gregory Taylor , an audit senior with SCA is very excited to be a part of the audit team ofJumbo Metals Limited ( JML ) . Gregory feels that he will be a valuable asset to the auditteam as his wife , Christina Taylor , is JML's financial controller who is responsible for thepreparation of J ML's financial report

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