As manager of Tebogo & Partners in the audit department of, a company of Chartered Certified Accountants. Your responsibilities are to train and mentor to new recruits into the department. A recently appointed junior auditor, Edson Josephs, has some concerns and wish you to answer some pertinent questions relating to issues he encountered a few weeks working at Tebogo & Partners. The questions are shown below.

1. On my initial training course, on the session on ethics, the presenter talked about being intimidated by a client. My assumption on this does not refer to physical intimidation, please can you explain what really is an intimidation threat? (10 marks)
2. I am aware that Tebogo & Partners faces some competition from a recently established new audit firm, and that the company is advertising for services in the daily national newspaper. Can you explain if there any rules on advertising for new clients? (10 marks)
3. I overheard the audit manager talking about our company having lost an audit client to a competitor due to lowballing. Explain the meaning of lowballing and is it allowed? (10 marks)

Required:

For each of the three questions raised, provide a response to the audit junior, in which you identify and explain the ethical or professional issue raised.