Auditing and Assurance Services in Australia, Seventh Edition 79 CHAPTER 3 Ethics, independence and corporate governance 90 REQUIRED ven For each situation, determine whether APES 1 10 has been breached and explain your answer, LO 3.4 .26 HARD You have recently joined the audit firm of Cameron, Casey & Associates (CCA) and have been asked to review the firm's audit clients to ensure that the independence requirements of APES 1 10 are being met. Your review has revealed the following: (a) Shannon O'Brien is an audit manager at CCA. Bell Pty Ltd is an audit client of CCA and has requested that Shannon help implement a new control system, arrange interviews for Bell's hiring of new personnel and instruct and oversee the training of current personnel. Fortress Lid requires an audit for the current year. However, Fortress has not paid CCA the fees due for tax-related services performed two years ago. Fortress has now issued CCA a promissory note for the unpaid fees, and CCA has proceeded to provide the audit services. CCA was recently appointed the auditor of Tasty Foods Lid for the year ended 30 June 2018. The senior-in-charge, Marshall Thompson, and an assistant observed the inventory stocktake on 30 June. On completion of the inventory observation, Carly Webster, Tasty Foods' accountant, informed Marshall that the shipping supervisor had a small gift for him and the assistant. Marshall asked Carly what the gift was for, and Carly responded that they had always given small gifts of food items to their previous auditors on completion of the inventory observation. Marshall estimates that the value of the food is less than $100. CCA audits a retirement village in which the parents of a member of the firm, Judy Chung, own a unit. The unit is material to the parents' net worth, and the member participates in the audit engagement. REQUIRED For each independent situation listed, state whether APES 110 has been breached and justify your answer. LO 3.4 Fee determination 3.27 EASY In an attempt to reduce business costs, and given the current competitive business environment, audit tendering is sometimes used for large audits. REQUIRED Identify the advantages and disadvantages of audit tendering. LO 3.5 stralian company, based in Melbou